Controlling shareholder, split-share structure reform and cash dividend payments in China

Chunyan Liu, Konari Uchida, Yufeng Yang

Research output: Contribution to journalArticlepeer-review

31 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)339-357
Number of pages19
JournalInternational Review of Economics and Finance
Publication statusPublished - Jan 2014

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


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