Impact of corporate disclosure on dividend policy: a novel setting of COVID-19-related disclosure by Vietnamese listed firms
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 15 April 2024
Abstract
Purpose
This study aims to investigate whether the extent of corporate disclosure, proxied by COVID-19-related disclosure, affects the dividend policy of listed firms.
Design/methodology/approach
The study uses a multinomial logistic regression model to examine the relation between corporate disclosure and the dividend policy of the 100 largest market-cap firms in Vietnam in 2021. The COVID-19 pandemic, with its unique impact on business operations, serves as the backdrop for this analysis.
Findings
The findings indicate that firms with more extensive COVID-19-related disclosure are more inclined to distribute dividends in the form of stocks or cash instead of omitting them.
Originality/value
This research contributes to the understanding of how corporate disclosure practices influence a firm’s financial decisions, particularly in the context of the COVID-19 pandemic. The findings hold implications for corporate financial decision-making during times of macroeconomic shock.
Keywords
Acknowledgements
This research is funded by Funds for Science and Technology Development of the University of Danang under project number B2022-DN04-07. Authors would like to express their gratitude to Professor Khaled Hussainey, the editor, Dr Tony Abdoush, the associate editor, and the anonymous reviewers for their valuable comments and suggestions, which significantly contributed to improving the manuscript.
Citation
Hoang, T.T. and Nguyen, H.C. (2024), "Impact of corporate disclosure on dividend policy: a novel setting of COVID-19-related disclosure by Vietnamese listed firms", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-10-2023-0598
Publisher
:Emerald Publishing Limited
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