Do fair value adjustments influence dividend policy among listed firms in Hochiminh Stock Exchange?

0 + + α3 x3 + α4 x4 + α5 x5 + α6 x6 + α7 x7 + ε (3) In equation (3), additional variables include: x4: Profit after tax in year t-1 before adjustment of change in financial asset value. x5: Profit after tax of year t before adjustment of change in financial asset value. x6: total assets in year t x7: money and cash equivalents of year t (code 110 on the Balance Sheet made on 31/12 / t, according to The Curcular No. 200/2014 / TT-BTC dated 22/12/2014 of the Minister of Finance) Variables are divided by the total assets of the enterprise by year. The results show the correlation between the change in dividend policy and the adjusted level of financial assets as shown in Table 6. 3. Results and Discussion To find the correlation between the adjustment of financial asset value and dividend policy of the business, the author studied the audited financial statements of 287 enterprises listed on the Stock Exchange Ho Chi Minh City in the areas of business in the period 2015-2017 The author selected enterprises listed on the Ho Chi Minh City Stock Exchange to investigate, get the research writing data because statistics show that this is the floor of many typical businesses, large scale, many sectors The market capitalization ratio is higher than the HNX, while the liquidity of the companies is higher. The author analyzes a sample of 287 public companies listed on the Ho Chi Minh City Stock Exchange in the period 2015-2017. Data obtained from the website of Ho Chi Minh City Stock Exchange and websites of listed companies. Data collected by the author using statistical software SPSS Statitics 17 analysis, evaluation find the relationship between the variables. Table 4 is a statistical report describing the dependent and independent variables examined by the author to determine the relationship with the dividend policy. Table 4: Statistical Report Variables Mean Median Maximum Minimum Std Deviation Δy 0.00485 0 0.00502 -0.00001 0.03369 x1 0.06021 0.03491 0.11132 0.00158 0.18026 x2 0.03747 0.02590 0.08613 0.00065 0.18962 x3 0.00790 0.00047 0.00722 0 0.02397 Survey data of 287 enterprises listed on Hochiminh Stock Exchange in the period 2015-2017 show that enterprises have average change in dividend policy, Last year was VND 4 850 per 1,000,000 VND of total assets. Of which the highest change was in VND5020 per 1 000 000 assets, the lowest change was 10 VND per 1 000 000 VND. 75 Results of data analysis according to equation (1) (2) we have: Table 5: Correlation regression results Variables (1) (2) Constant 0.044 (7.40)*** 0.044 (7.42)*** NIBREV t-1 0.228 (2.81)*** 0.428 (2.81)*** REV t-1 0.448 (0.84) N Adj.R2 287 0.2 287 0.2 Looking at Table 5, there is an intimate relationship between the after-tax profit of the year and the business results of the previous year (excluding the adjustment of the financial asset value) and the adjustment of the asset value last year's finance. Dependent variable is NIt: Profit after tax of year t. Independence variable is NIBREV t-1 as the t-1 business result before taking into account the value of financial assets. This variable is calculated by the EIT of year t-1 plus (minus) the adjusted total financial assets at the year-end t-1. The independent variable REV t-1 is the sum of the difference in the value of financial assets at the end of year t-1. Table 6: Factors influencing the dividend policy Variables (1) (2) (3) Constant 0.008 (5.75)*** 0.008 (5.76)*** x1 0.010 (2.26)*** x2 0.070 (2.09)** x3 -0.464 (2.97)*** -0.464 (2.97)*** -0.464 (2.97)*** x4 0.010 (2.25)** 0.010 (2.25)** x5 0.070 (2.09)** 0.070 (2.09)** x6 0.001 (4.33)*** x7 0.004 (0.55) N Adj.R2 287 0.11 287 0.11 287 0.12 76 Looking at the data in Table 6, we find that the relationship between y and x3 is reversed - 0.464. So there is a negative relationship between the increase in the value of financial assets and the change in dividend policy. Thus the H2 hypothesis is rejected, there is a negative relationship between the adjustment of the financial asset value and the change in dividend policy. The effect of adjusting the financial asset value is negative and statistically significant. 4. Conclusions and Policy Implications Research results show that the dividend policy change is influenced by three factors in the model (1): Group of factors: Business results. Last year's business results impacted the same relationship with 0.01; The business performance factor of the company this year affects the same direction, proportional to the coefficient 0.07. Thus, the H1 hypothesis is accepted. The policy of dividends depends on the business results of the whole year before and this year, in which business results this year have a greater impact on dividend policy. Group factors: Adjustment of financial asset value. The factor of financial asset value was negatively impacted, at the rate of -0.464 Thus the H2 hypothesis is rejected. There is no positive relationship between the increase in the value of financial assets and dividend policy. On the other hand, when enterprises increase the adjustment of financial asset value through provisioning, they tend to be cautious and keep the same dividend policy as the previous year. This research indicates that if the enterprise has many reserves and adjusted the amount and value of financial assets, dividend policy tends to remain stable as last year. Increase dividend payout this year. This is also a useful information for investors on the stock market. However, if the dividend yield is lower than market expectation, it may lead to negative signals on the stock market (Brav et al., 2005) and may damage the reputation of the company and its markets. financial school (Gomes, 1996). There is also the view that companies use adjusted financial asset values as an excuse to reduce dividends (Uspensky, 2008). Edwards and Mayer (1985) found that managers of the UK's largest companies reduced their dividends as they faced a continuous decline in earnings, suggesting that temporary regulators Business results are not included in distribution of dividends. From the study results on the author suggested to stock investors as follows: Signs of reducing the dividend policy: On the balance sheet there is an increase of the index: Provision for short-term investment (code 129); Short-term bad debt reserve (code 77 139); Long-term bad debt reserve (code 219); Provision for long-term financial investment (code 259). 5. References Rarth, M.E. (2006) ‘International Financial reporting Standard: pros and cons for investor’. Accounting and Business Rerearch, 36(special issue). Barth, M.E., Beaver, W.H and Landsman, W.R.(2001). ‘The relevance of the value relevance literature for financial accounting standard setting: another view’. Journal of Accounting and Economics, 31(1-3). Beatty, A. 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