Equity ownership segregation, shareholder preferences, and dividend policy in China

Gang Wei and Jason Zezhong Xiao

The British Accounting Review, 2009, vol. 41, issue 3, 169-183

Abstract: We investigate how listed Chinese firms pay different types of dividend to satisfy shareholders, different dividend preferences shaped by institutional factors such as share tradability and asymmetrical taxation. We find that the cash dividend level is significantly and positively related to the proportion of non-publicly tradable shares and this relation is mainly driven by legal person shareholders' preferences for cash dividends. In contrast, the stock dividend level is significantly and positively associated with the proportion of publicly tradable shares. These findings provide an empirical rationale for the current reform on the segregation of equity ownership rights in China.

Keywords: China; Cash dividends; Ownership; Reform; Stock dividends (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:41:y:2009:i:3:p:169-183

DOI: 10.1016/j.bar.2009.07.001

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