Female directors and dividend payout with family ties: evidence in Vietnam

Abstract

The objective of this study is to assess the theoretical and empirical research on women directors and dividend payout policy. In terms of the methodology, this study has reviewed and identified the majority of previous research on the role of female board members and dividends. We use 9-year annualized panel data from 2012 to 2020 of 617 Vietnamese companies listed in the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX). Analysis using fixed effects models showed that women directors positively impact the dividend payout. Besides, ROA and growth opportunities also positively affect dividend payout while firm size negatively impacts dividend payout. Women directors on a board with family ties tend to act in a way that decrease dividend payment. These results imply that higher profit corporations prefer to pay a substantial amount of dividends, while firms with large total assets prefer to retain their earnings for more investment opportunities. Thereby, this thesis agrees with socioemotional wealth theory.