Peer influence on dividend policy: Evidence from the Chinese stock market
Qianhui Yan and
Hongfei Zhu ()
Economics Letters, 2020, vol. 192, issue C
Abstract:
This study proves that peer influence matters when it comes to a firm’s dividend decisions. The “reflection” problem arises when members of the same group behave similarly. To overcome endogeneity problems, we employ instrumental variable techniques based on peers’ idiosyncratic risk. The degree to which peer influence affects individual firms differs depending on the competitiveness of the industry and the ratio of the state-owned share of the company.
Keywords: Dividend policy; Peer effect (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301622
DOI: 10.1016/j.econlet.2020.109229
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