Determinants of Dividend policy: The Evidence from Listed Companies in Ho Chi Minh Stock Exchange (HOSE)

Abstract

The study was conducted to examine the determinants of dividend policy of listed firms

in HOSE. After analyzing the results from the panel data of 246 non financial listed firms from 2007 to 2011, we found that growth and firm size had significant and positive relationship with dividend payout ratio. Meanwhile, profitability and financial leverage negatively correlated with dependent variable but it was not significant. There is a weak evidence to support for the correlation between profitability and financial leverage with dividend payout ratio. Additionally, we also found that the dividend payout ratio of Mining and Quarrying industry and Real Estate Activities was higher than the dividend payout ratio of Manufacturing industry over the period 2007 to 2011.