The fit of dividends on investment decisions in the Vietnam capital market
DOI:
https://doi.org/10.15549/jeecar.v9i3.856Keywords:
Vietnam, Agency Theory, Asymmetric Information Theory, Dividends, Investment, 2SLSAbstract
This paper explores the effect of dividends on the investment decisions of listed firms in Vietnam from 2010 to 2020. The study employs quantitative research methods to demonstrate a significant effect of dividends on investment decisions. In addition, the phenomena involving endogeneity, and over-identifying restrictions are tested to ensure the reliability of the findings. The dividend-investment relationship is explained based on some theories, including the bird-in-the-hand theory, the asymmetric information theory, and the agency theory. In particular, the study focuses on an emerging market under transparent information issues, as in Vietnam.
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