The impact analysis of financial expertise and directors’ shareholding ratio on dividend policy of firms: the case of different-sized listed companies in Vietnam

Abstract

This study tests the relationship and measures the degree of influence between the financial expertise of the board of directors, the ownership ratio of the board of directors on the dividend policy of enterprises. To test, the author uses a data set of 306 listed companies on the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), the data includes 306 enterprises collected in the period from 2012-2022, the data includes 3366 observations and uses the generalized least squares regression (GLS) method to test the impact of the financial expertise of the board of directors, the ownership ratio on the dividend policy of enterprises. The research results show that the financial expertise of the board of directors and the ownership ratio held by the board of directors have a negative impact on the dividend policy of the enterprise. In addition, other factors affecting the dividend policy include retained earnings, dividend policy of the previous period, return on assets, financial leverage, total assets. Although there are certain limitations on the observation sample, data collection, measurement used and the variables mentioned, through the empirical results, the author expects the research to still be able to support enterprises to make the best decisions in choosing and using the board of directors to improve the dividend policy of the enterprise.