Impact of dividend policy on corporate value: Experiment in Vietnam

t to firm’s value when measured by Tobin's Q and share price. The results of this study are consistent with the findings of Allayannis & Weston (2001), Mohamad & Saad (2010), Hung, Ha, & Binh (2018). • Enterprise Size factor (SIZE): is positively correlated and statistically significant to firm’s value when measured by Tobin's Q and stock price. The results of this study are in line with the original H3 hypothesis, which is consistent with the study results of Colquitt et al. (1999), Liebenberg & Hoyt (2003), Dang, Tran, Nguyen (2018), but contrary to the study of Lang & Stulz (1994), Allayannis & Weston (2001), Dogan & Topal (2014), Anton (2016). • Degree of Financial Leverage factor (DFL): is inversely related to business value and is statistically significant in all models when measuring firm’s value using Tobin's Q and stock price. The results of this study are in line with the original H4 hypothesis, which is consistent with the results of Durand (1952), Modigliani & Miller 642 (1958), Modigliani & Miller (1963), but not similar to the results of the study Hoyt & Liebenberg (2011), Anton (2016). 4. Conclusions and Policy Implications The cash dividend payment of listed companies on Ho Chi Minh City Stock Exchange was less volatile and tended to decrease during the study period. Dividend policy is measured by the ratio of cash dividends, which has a positive impact on the value of enterprises and the statistical significance at 1%. Businesses need to maintain stability and dividend policy with a high dividend payout ratio (over 10% per year) because this is a very important factor affecting the value of the business. Also, there is a positive correlation between profitability and business value. This shows a consensus over the theories set forth above. Thus, enterprises need to improve their profitability by saving money, effectively using existing equipment; at the same time, to expand the size, maintaining the growth rate as they are factors that help increase the corporate value. Enterprises should expand the form of joint ventures with partners both at home country and abroad to acquire more assets, especially fixed assets with modern technology to operate as well as learn to improve management levels, utilizing assets and markets of partners to enhance corporate value. In addition, businesses need to manage the costs associated with sales and business management as well as manage well receivables in order to improve operational efficiency. Financial leverage influences the value of the business. This means that with corporates that rely on borrowing, the value of the business will be reduced. As the result, businesses need to be cautious in mobilizing loans, giving priority to owners’ equity and stock issuance for business financing. For investors, results of the study on the impact of dividend policy, profitability, business size, financial leverage on the corporate value of listed companies on Ho Chi Minh City Stock Exchange will show them some practical explanation of those influences. From then, looking at dividend policy, investors will have the ability to predict the profitability of the business in order to make appropriate investment decisions. This paper stops at the study of internal factors affecting business value. In the future, the research team will continue to expand on the study of external factors such as inflation, growth rate, interest rate, etc., as well as further analysis of internal factors such as business management and ownership structure in order to clarify the impact of dividend policy on corporate value. 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