Relationship Between Stock Trading Liquidity and Dividend Payout Ratio of Listed Companies in The Stock Exchange of Thailand
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Abstract
In theoretical, stock trading liquidity will be increased if the dividend payout ratio increased by decreasing of information asymmetry. However, in some cases, stock trading liquidity could be negatively correlated if dividend payout and liquidity are substitutes. Therefore, the objective this study is 1) investigates a relation between stock trading liquidity and dividend payout ratio by analyzing the samples collected from 2,834 samples by listed companies registered with the Stock Exchange of Thailand during 2008-2016. As a result, we have revealed a negative relation between stock trading liquidity and dividend payout ratio. Additionally, this study was further analyzing the relation using difference dividend payout variables. 2) adding more information transparency conditions. We have found the positive relation between stock trading liquidity and dividend payout ratio (DVP), when the information has a higher transparency. 3) adding more agency problem conditions. Finally, we have no found the relation between stock trading liquidity and dividend payout ratio.
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