Impact of dividend policy on corporate value: Experiment in Vietnam

The paper examines the impact of dividend policy on corporate value. Data collection is the result of listed companies on the Vietnamese stock market in the period of 2006-2017 with 2,278 observations. Using the general least square (GLS) approach, the authors have identified three factors that have a positive and significant impact on corporate value: dividend payout, profitability, and corporate sizes; and one factor that has a negative impact on corporate value is the degree of financial leverage. The study found that dividend policy has a significant impact on the corporate value of companies that implement a higher dividend payout policy. Conversely, firms that do not pay dividends or pay low dividends do not experience a significant impact of dividend policy on corporate value. The results of the study will be meaningful for businesses on dividend policy implementation.