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http://dx.doi.org/10.13106/jafeb.2020.vol7.no7.361

The Role of Overconfident CEO to Dividend Policy in Industrial Enterprises  

HOANG, Lam Xuan (Huu Nghi University of Technology & Management)
DANG, Duong Quy (School of Business and Management, Vietnam National University)
TRAN, Thuan Duc (Thuan Phat Import and Export Production Trading and Technical Services Company Limited)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.7, 2020 , pp. 361-367 More about this Journal
Abstract
Researching the influence and role of CEO overconfidence to dividend policy is important for stock market investors. Therefore, this study was conducted to find out the relationship between CEO overconfidence and dividend policy in industrial enterprises in Vietnam. Data collected from 222 industry enterprises listed on the Vietnam Stock Exchange from 2012 to 2018. Data is collected on financial statements of listed companies. GLS model with panel data is used to analyze regression results. The results show that CEO overconfidence has dividend yield higher than CEO non-overconfidence. At the same time, the dividend payout ratio of enterprises has no difference between CEO overconfidence and CEO non-overconfidence. The results also showed that revenue growth has a positive impact on dividend yield in small enterprises, but negative impact on dividend payout in large enterprises. Research results by firm size have similar results with the general analysis for all enterprises. At the same time, the analysis of ownership type shows that CEO overconfidence has a positive impact on dividend yield of non-state enterprises without affecting other types of enterprises. From these results, the authors also made a number of recommendations to help investors choose businesses to invest in accordance with their strategies.
Keywords
CEO Overconfidence; Dividend Payout; Dividend Yield;
Citations & Related Records
Times Cited By KSCI : 6  (Citation Analysis)
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