DOI:

Abstract

The objective of decision to pay dividend as well as other financial decisions is to maximize the firm value. Under normal conditions, this objective may be realized by increases in the firm stock price. The paper aims at clarifying effects of dividend policy on market prices of Vietnamese firms reflected in changes in the stock prices after dividend payment is declared. To determine whether the current dividend policy is suitable or not, the paper also examines connections between dividend policy and internal factors of the firm.

Keywords

Dividend; Dividend Policy; Stock Prices; Internal Factors.