Factors Affecting the Dividend Policy of Vietnamese Enterprises in the Context of the Covid-19 Pandemic

Abstract

The article studies the factors affecting the dividend policy of enterprises in the context of the Covid-19 pandemic, such as profitability, business size, financial leverage, growth rate, solvency, and enterprise longevity. The study collects data on enterprises listed on the Vietnamese stock market from 2019 to 2022 with 2736 observations. Using the general regression method (GLS) and the fixed regression method (FEM), the authors have identified the factors that have a positive and statistically significant impact: (i) profitability and the longevity of the business; (ii) At the same time, the research results also show that the factors that have a negative impact on the dividend payout ratio are revenue growth rate, business size, financial leverage, solvency. Besides, in the context of the Covid 19 pandemic, the dividend yield tends to decrease. The research results are a scientific basis for businesses to have more appropriate dividend payment policies, better capital attraction in the stock market, and especially a hedging strategy for risks such as Covid 19 epidemic.