TY - JOUR
T1 - Dividend preference of tradable‐share and non‐tradable‐share holders in Mainland China
AU - Cheng, Louis T. W.
AU - Fung, Hung Gay
AU - LEUNG, Tak Yan
N1 - Comprehensive data on corporate announcements of Chinese firms allows us to examine the preference for, and determinants of, cash and stock dividends. The results indicate that Chinese public investo...
PY - 2009/5/18
Y1 - 2009/5/18
N2 - Comprehensive data on corporate announcements of Chinese firms allows us to examine the preference for, and determinants of, cash and stock dividends. The results indicate that Chinese public investors prefer stock dividends over cash dividends, which are preferred by large state and legal person shareholders generally. Stock dividends, which do not require an explicit cash outflow from a firm, are found to be positively related to higher earnings, supporting the signalling hypothesis of dividend policy. In an imperfect market, these results have some implications for government regulation of financial markets.
AB - Comprehensive data on corporate announcements of Chinese firms allows us to examine the preference for, and determinants of, cash and stock dividends. The results indicate that Chinese public investors prefer stock dividends over cash dividends, which are preferred by large state and legal person shareholders generally. Stock dividends, which do not require an explicit cash outflow from a firm, are found to be positively related to higher earnings, supporting the signalling hypothesis of dividend policy. In an imperfect market, these results have some implications for government regulation of financial markets.
UR - https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-629X.2008.00284.x
U2 - 10.1111/j.1467‐629X.2008.00284.x
DO - 10.1111/j.1467‐629X.2008.00284.x
M3 - Article
VL - 49
JO - Accounting & Finance
JF - Accounting & Finance
ER -