The impact of covid-19 pandemic on the association between state ownership and dividend policy: insights from nonfinancial listed companies in Vietnam

Purpose This paper aims to contribute to the literature by examining the impact of COVID-19 pandemic on the association between state ownership (SO) and dividend policy of nonfinancial firms listed on the Vietnam stock market. To the best of the authors’ knowledge, this paper is the first to do so. Design/methodology/approach Logit, probit and Tobit models are used to examine the relationship. To address endogeneity concerns, this study incorporates one-year time lag values of the explanatory variables into all estimations. Findings The results indicate that the COVID-19 pandemic weakens the positive impact of SO on dividend payments and also harms dividend payments. Research limitations/implications The results have practical implications for investors and policymakers. Originality/value This study offers new insights into how the COVID-19 pandemic affects the association between SO and the dividend policy of nonfinancial firms listed on a frontier market.