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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.
Keywords: Dividend policy, Covid-19 pandemic, Dividend yield; Dividend Ratio, Emerging Markets.
1. Introduction
A dividend policy fixes the distribution between retained earnings and reinvested dividends. Retained earnings provide investors with a source of potential future profit growth through reinvestment, while dividends offer them with a current distribution. It determines how much of the company's after-tax profits will be distributed, what percentage is kept for reinvestment, and how much is used to pay dividends to shareholders. Therefore, dividend policy will affect the equity ratio in the firm's capital structure and the firm's cost of capital.
Dividend policy plays a vital role in the business activities of enterprises and is affected by many factors, such as profitability, growth rate, and business size. This study focuses on clarifying these factors. Theory on the factors affecting the dividend payment policy of enterprises and determine the degree of influence of these factors on the dividend payment decision of the companies listed on the Vietnam stock market. There have been many studies on factors affecting dividend policy in the world, such as research by (Fama & French, 2001), (Pandey, 2001), (Gill, Biger, & Tibrewala, 2010), (Thanatawee, 2013). These studies have similar results but inconsistent results that require additional research. In Vietnam, the studies...