Board characteristics and dividend payout ratios: Empirical evidence from the Vietnam Stock Exchange

Abstract

This study was conducted to investigate the impact level of board characteristics on the dividend payout ratio of firms listed on the Vietnam Stock Exchange. Data were collected from 321 listed firms during the period of 2014 to 2019. The results of the generalised least squares (GLS) method show that board ownership has a negative impact on the dividend payout ratio. In addition, the findings also support agency theory on the negative relationship of chief executive officer duality and dividend payout ratio. Besides, the proportion of female members was also found to have a negative effect on dividend payout ratios of listed firms. Based on these findings, some recommendations are proposed for listed firms such as i) consider regulations on the share ownership level of members of the board of directors, ii) separate the two positions of chairman and chief executive officer, and iii) consider a reasonable board of director structure when deciding to increase the number of female members on the board of directors.