Ownership structure and dividend policy of China's listed companies.
Date of Issue2006
School of Humanities and Social Sciences
This study empirically examines the causes and consequence of the dividend payout decision for China's listed companies. Empirical results show that after controlling for companies' specific characteristics, the unique ownership structure of China's listed companies contributes to the dividend payout decision. First, the cash dividend payout decision is driven by the propensity of the non-tradable shareholders, especially the Legal-Person shareholders. Controlling shareholders use cash dividend as a way to liquidate from the listed companies.
Nanyang Technological University