Impact of taxation on dividend evidence from Vietnam

Abstract

This research was conducted to analyse the impact of tax on dividend policy with the sample of 430 non-financial companies listed at Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX) from 2007 to 2018. Based on static and dynamic panel data, this paper used regression models including OLS, FEM, REM and sGMM to analyse that relationship. The results of the study show that the new personal income tax law related to dividend and capital gains income of investors has effects on the corporate dividend policy, though the level of influence is not much. Along with that is the biggest impact of the profit variable. The size, leverage and last year’s dividends also significantly influenced the dividend policy of enterprises in Vietnam's stock market.