THE IMPACTS OF STOCK LIQUIDITY ON DIVIDEND POLICY: EVIDENCE FROM LISTED FIRMS ON HOCHIMINH STOCK EXCHANGE
Keywords:Dividend policy, HOSE, Stock liquidity.
AbstractThis study investigates the relationship between stock liquidity and corporate dividend policy of 267 listed firms on the Hochiminh Stock Exchange during the period from 2008 to 2016. The empirical results statistically indicate a significant negative relationship between stock liquidity and dividend policy in the context of Vietnam. This means that when a company has a stock with high liquidity, there will be a high possibility that the company will not pay out dividends or pay no dividends.
Amihud, Y. (2002). Illiquidity and stock returns: Cross-section and time-series effects. Journal of Financial Markets, 5(1), 31-56.
Banerjee, S., Gatchev, V. A., & Spindt, P. A. (2007). Stock market liquidity and firm dividend policy. Journal of Financial and Quantitative Analysis, 42(2), 369-397.
Ben, N. S., & Nachi, W. (2006). Does the Tunisian accounting reform improve the value relevance of financial information? Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=888922.
Brockman, P., Khurana, I. K., & Martin, X. (2008). Voluntary disclosures around share repurchases. Journal of Financial Economics, 89(1), 175-191.
Fama, E. F., & French, K. R. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60(1), 3-43.
Jiang, F., Ma, Y., & Shi, B. (2017). Stock liquidity and dividend payouts. Journal of Corporate Finance, 42, 295-314.
Kuo, J. M., Philip, D., & Zhang, Q. (2013). What drives the disappearing dividends phenomenon? Journal of Banking & Finance, 37(9), 3499-3514.
Griffin, C. H. (2010). Liquidity and dividend policy: International evidence. International Business Research, 3(3), 3-9.
Hoda, T., & Uno, J. (2011). Liquidity, ownership structure, and market share repurchases: Evidence from Japan. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1914152
Lesmond, D. A., Ogden, J. P., & Trzcinka, C. A. (1999). A new estimate of transaction costs. The Review of Financial Studies, 12(5), 1113-1141.
Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. The Journal of Business, 34(4), 411-433.
Michaely, R., & Qian, M. (2016). Stock liquidity and dividend policy: Evidence from a natural experiment. Retrieved from https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=CICF2017&paper_id=202
Roll, R. (1984). A simple implicit measure of the effective bid‐ask spread in an efficient market. The Journal of Finance, 39(4), 1127-1139.
Seyedkkhosroshahi, S., Sabaei, A., & Vatankhah, P. (2013). Stock market liquidity, firm characteristics and dividend payouts. Journal of American Science, 9(4s), 172-177.
Tobin, J. (1958). Estimation of relationships for limited dependent variables. Econometrica: Journal of the Econometric Society, 26(1), 24-36.
Volume and Issues
Copyright & License
Copyright (c) 2018 Phùng Đức Nam, Hoàng Thị Phương Anh, Lê Thị Thanh Vương
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.