The relationship among information asymmetry, dividend policy and ownership structure

Tsui-Jung Lin, Yi-Pei Chen and Han-Fang Tsai

Finance Research Letters, 2017, vol. 20, issue C, 1-12

Abstract: This study examines the relationship among information asymmetry, dividend policy and ownership structure for Chinese listed firms from 2003 to 2012. We find that firms with higher information asymmetry are less likely to pay dividends. Further, the sample is divided into state-controlled and non-state-controlled firms, and the results show that state-controlled firms with higher information asymmetry would pay higher dividends compared to non-state-controlled firms. In addition, we find that the split share structure reform enhanced information transparency, leading to a positive moderating effect on the relation between information asymmetry and dividend policy.

Keywords: Information asymmetry; Ownership structure; Dividend policy; Split share structure reform (search for similar items in EconPapers)
JEL-codes: G32 G35 G38 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:20:y:2017:i:c:p:1-12

DOI: 10.1016/j.frl.2016.06.008

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