TY - JOUR
T1 - Controlling shareholder, split-share structure reform and cash dividend payments in China
AU - Liu, Chunyan
AU - Uchida, Konari
AU - Yang, Yufeng
PY - 2014/1
Y1 - 2014/1
N2 - We investigated the relationship between changes in cash dividend payments, non-public tradable shares, and the percentage ownership of the controlling shareholder in Chinese firms before and after the split-share structure reform. We found a significant reduction in cash dividends before and after the reform. Importantly, the reduction in cash dividends is significantly related to the reduction in the largest shareholder's ownership; however, it is not associated with the decline in non-publicly tradable shares. These results suggest that Chinese controlling shareholders' preference for cash dividends is attributable to the inherent illiquidity of their shares rather than non-tradability of shares.
AB - We investigated the relationship between changes in cash dividend payments, non-public tradable shares, and the percentage ownership of the controlling shareholder in Chinese firms before and after the split-share structure reform. We found a significant reduction in cash dividends before and after the reform. Importantly, the reduction in cash dividends is significantly related to the reduction in the largest shareholder's ownership; however, it is not associated with the decline in non-publicly tradable shares. These results suggest that Chinese controlling shareholders' preference for cash dividends is attributable to the inherent illiquidity of their shares rather than non-tradability of shares.
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U2 - 10.1016/j.iref.2013.06.008
DO - 10.1016/j.iref.2013.06.008
M3 - Article
AN - SCOPUS:84888289536
SN - 1059-0560
VL - 29
SP - 339
EP - 357
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
ER -