A comparison of Swedish and Vietnamese dividend policies

by Matilda Lundberg

Institution: Uppsala University
Year: 2014
Keywords: Dividend Payout ratio; Stock market; Vietnam; Sweden; crisis; movement; Social Sciences; Economics and Business; Business Administration; Samhällsvetenskap; Ekonomi och näringsliv; Företagsekonomi; Ekonomprogrammet, 180 hp (HGO); Programme of Graduate Business Administration (HGO); Företagsekonomi; Business Studies
Record ID: 1359806
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-228090


The dividend payout policy is a very debated topic, in this thesis the differences between Sweden and Vietnam will be examined. By examine two different countries with more or less the same landmass, but regarding economic, culture and politics they differ highly.   The purpose of this study was to determine whether there were a difference between the countries in dividend payout ratios, to see if the countries payout a high or a low dividend during the years 2005 to 2012. The second purpose was to examine if there was a significant differences in the movements in the markets. The third purpose was to examine how the two countries acted during the financial crisis, if the dividend payout ratio changed. This may tell how the policies in the two countries differ and how long term or short term the firms within the countries were planning and which kind of investors they are attracting. The data being used is collected historical data from firms with in each of the countries. The thesis follows a quantitative research method based on a deductive and an inductive approach. The research design is comparative for examination of two the countries data samples and for the purposes descriptive and explanatory studies have been done. In order to determine whether there is a relationship between the countries dividend payout ratio, the normality of the data sample have been examined, showing that the data were not normal distributed. Therefor the data were examined with a Mann- Whitney test and by a Kruskal- Wallis test.   The result indicates that there is a difference between the countries in dividend payout ratios in the case of Vietnam and Sweden under the years 2005 to 2012. Comparing countries together between the years to determine possible differences, the dividend payout ratio was insignificant in 2005 to 2008, but significant in the years 2009 to 2012. The examination of Vietnam and Sweden separately with years as factors the dividend payouts in Vietnam showed a significant difference but an insignificant result in Sweden during the year 2005 to 2008. Further, the results showed that there is a difference between the years in Sweden between 2009 to 2012 but no differences in Vietnam under the same years.