Dividend preference of tradable-share and non-tradable-share holders in Mainland China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

33 Scopus Citations
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Author(s)

  • Louis T. W. Cheng
  • Hung-Gay Fung
  • Tak Yan Leung

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)291-316
Journal / PublicationAccounting and Finance
Volume49
Issue number2
Publication statusPublished - Jun 2009

Abstract

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. © 2009 AFAANZ.

Research Area(s)

  • Cash dividend, Dividend signal, Non-tradable share, Stock dividend

Citation Format(s)

Dividend preference of tradable-share and non-tradable-share holders in Mainland China. / Cheng, Louis T. W.; Fung, Hung-Gay; Leung, Tak Yan.

In: Accounting and Finance, Vol. 49, No. 2, 06.2009, p. 291-316.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review