Dividend policy: Shareholder rights and creditor rights under the impact of the global financial crisis

Ownership structure and performance of professional service firms in a declining industry: Evidence from Vietnamese securities firms

“…This study argues that the declining industry is a good institutional environment to examine the relationship between ownership structure and firm performance of Vietnamese securities firms. This downturn decreases the return on investment of the industry and creates incentives for managers to expropriate shareholders more severely (Lemmon & Lins, 2003;Mitton, 2002;Tran et al, 2017). In addition, different groups of shareholders recognizing the status of the industry may have their own reactions which are likely to affect firm performance.…”

“…Consequently, the agency problem becomes more severe. Several studies indicate that the expropriation of shareholders is significantly greater under the effect of financial crisis (Lemmon & Lins, 2003;Mitton, 2002;Tran, Alphonse, & Nguyen, 2017). In addition, when recognizing the status of the industry, different groups of shareholders are likely to have their own reaction which can affect performance of securities firms.…”

Monetary Loosening and Dividend Policy: Evidence from Vietnamese Stock Market

“…In addition, dividend payment is a means to disgorge cash. Several studies find a positive relationship between corporate cash holding and dividend policy (Brockman & Unlu, 2009;Tran et al, 2017). We argue that firms with more cash holdings are less likely to rely on external finance and they are more flexible to manage their dividend policy.…”

“…Consequently, firms prefer internal funds to external funds and thus they tend to save retained earnings for their investment projects instead of distributing dividends. There are many prior studies that document empirical supporting evidence for the pecking order theory (Aivazian et al, 2003;Al Shabibi & Ramesh, 2011;Al-Malkawi, 2007;Al-Najjar & Hussainey, 2009;Cao et al, 2017;Denis & Osobov, 2008;Fama & French, 2001;Holder et al, 1998;Jabbouri, 2016;Jensen et al, 1992;Jiraporn et al, 2011;Kowalewski et al, 2007;Thanatawee, 2011;Tran et al, 2017).…”

“…Therefore, firms are reluctant to raise external funds and tend to restrict dividends to save retained earnings for available investment opportunities. Many prior studies find that firms with more investment opportunities, better access to external funds, and higher costs of external financing are less likely to pay dividends in the United States (Alli et al, 1993;Holder et al, 1998;Jiraporn et al, 2011), Bangladesh (Mollah, 2001), Ghana (Amidu & Abor, 2006), Jordan (Al-Malkawi, 2007), Canada (Baker et al, 2007), Thailand (Thanatawee, 2011) and across countries (Cao et al, 2017;Denis & Osobov, 2008;Tran et al, 2017). However, there are relative few studies investigating how corporate dividend policy is determined by monetary policy that may change the availability and the costs of external financing.…”