Artikel

Can liquidity explain dividends?

Vietnam is an interesting case to study firm behavior because it is an example of a successful transitional economy. In the last few years, the government is building a supportive environment to promote business activities. Therefore, it is crucial to investigate whether corporate managers utilize dividend payout policy as a corporate financial management tool to address information asymmetries in such an environment. However, in the context of emerging markets, this topic is still under-explored even though firms in emerging markets are of lower disclosure quality. This paper investigates how corporate dividend decision is associated with liquidity, a measure of information asymmetries using a data sample of listed firms in Vietnam, an emerging market. Specifically, we utilize a dataset of firms listed on the Ho Chi Minh City stock exchange (HOSE) from 2007 to 2015. We find a negative relation between stock market liquidity and dividend payout in Vietnamese firms. The finding confirms that corporate managers in Vietnam tend to compensate for less liquidity with more dividend payout. The paper also suggests that dividends could be a substitute for stock liquidity.

Sprache
Englisch

Erschienen in
Journal: Cogent Business & Management ; ISSN: 2331-1975 ; Volume: 9 ; Year: 2022 ; Issue: 1 ; Pages: 1-11

Klassifikation
Management
General Financial Markets: General (includes Measurement and Data)
Corporate Finance and Governance: General
Payout Policy
Thema
dividend payouts
information asymmetries
stock market liquidity
Supporting government
Vietnam

Ereignis
Geistige Schöpfung
(wer)
Vo, Xuan Vinh
Ereignis
Veröffentlichung
(wer)
Taylor & Francis
(wo)
Abingdon
(wann)
2022

DOI
doi:10.1080/23311975.2021.2018906
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Vo, Xuan Vinh
  • Taylor & Francis

Entstanden

  • 2022

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