Skip to main content

Shareholder wealth effect of dividend policy: Empirical evidence from the Chinese securities market

Abstract

Based on the special separated equity management structure of the listed companies in China and using a sample of the listed companies with distributed dividend in 2003 and 2004, this paper tests the shareholder wealth effects of dividend policy in Chinese separated equity market. Results show that shareholders of non-circulating stock get a high return rate by cash dividends, and circulating shareholders obtain a high short-term return rate by stock dividends.

摘要

基于我国上市公司股权分置的特殊治理结构, 以2003–2004年所有分配股利的上市公司为样本, 实证检验我国上市公司股利政策的股东财富效应, 发现: 分配现金股利使非流通股股东实现高回报率, 而流通股股东获得股 票股利的较高短期收益率。

References

  1. Aharony J, Swary I (1980). Quarterly dividend and earnings announcements and stockholders Returns: An empirical analysis. Journal of Finance, (35): 1–12

  2. Chen Guohui, Zhao Chunguang (2000). Positive study on the dividends policy option for enterprises in the stock market. Research on Financial and Economic Issues, (5): 48–56 (in Chinese)

  3. Chen Langnan, Yao Zhengchun (2000). An empirical study on the signaling effect of dividend policy in China. Finance Research, (10): 69–77 (in Chinese)

  4. Chen Wei, Liu Xing, Yang Yuanxin (1999). An empirical study on the signaling effect of dividend policy in Shanghai stock market. Chinese Journal of Management Science, (3): 56–62 (in Chinese)

  5. Chen Xiao, Chen Xiaoyue, Ni Fan (1998). An empirical study on the signaling effect of first dividend of Chinese listed companies. Economic Science, (5): 33–43 (in Chinese)

  6. Deng Jianping, Zeng Yong (2005). Research on relationship between controlling right structure and dividend policy. http//www.cfrn.com.cn/paper (in Chinese)

  7. Easterbrook F H (1984). Two agency cost, explanation of dividends. American Economic Review, (74): 650–659

  8. Faccio M, Lang L, Young L (2001). Dividends and expropriation. American Economic Review, 91: 54–78

    Article  Google Scholar 

  9. Fama E F, Babiak H (1968). Dividend policy: An empirical analysis. Journal of American Statistical Association, (63): 1132–1161

  10. Gosnell T F, Keown A J, Pinkerton J M (1996). The intraday spread of Stock price adjustment to major dividend changes: Bid-ask bounce and order flow imbalance. Journal of Banking & Financing, 20: 247–266

    Article  Google Scholar 

  11. Green R C, Ydqvist K R (1999). Ex-day behavior with dividend preference and limitations to short-term arbitrage: The case of Swedish Lottery bonds. Journal of Financial Economics, (53): 145–187

  12. Jenson M C, Meckling W H (1976). Theory of the firm: Managerial behavior. Agency cost and ownership structure. Journal of Financial Economics, (3): 305–360

  13. La Porta, R, Florencio L-de-S, Andrei S, Robert W V (2000). Agency problems and dividend around the world. Journal of Finance, (55): 1–35

  14. Lang L H P, Litzenberger R H (1989). Dividend announcements—cash flow signaling versus cash flow hyposis? Journal of Financial Economics, (24): 181–191

  15. Lee C J, Xiao X (2002). Cash dividends and large shareholder expropriation in China. Working paper. Tsinghua University

  16. Lee C J, Xiao X (2004). Tunneling dividend. Working Paper. Tulane University

  17. Li Guanzhong (2004). A research on the correlativity between finance continuable growth and paying cash dividend. Paper Collection of China the third Empirical Accounting International Seminar, 406–413 (in Chinese)

  18. Lintner J (1956). Distribution of incomes of corporations among dividends, retained earning, and taxes. American Economic Review, (46): 97–113

  19. Liu Shulian, Hu Yanhong (2003). An empirical analysis on cash dividend of Chinese listed companies. Accounting Research, (4): 29–35 (in Chinese)

  20. Lü Changjiang, Wang Kemin (1999). An empirical analysis on dividend policy of listed companies. Economic Research Journal, (12): 31–39 (in Chinese)

  21. Lü Changjiang, Zhou Xianhua (2005). Corporate governance and payout incentive-based on agency cost and tunneling. Nankai Business Review, (3): 9–17 (in Chinese)

  22. Miller M, Modigliani F (1961). Dividend policy, growth and valuation of shares. Journal of Business, (34): 411–433

  23. Rozeff M S (1982). Growth beta and agency costs as determinants of dividend payout ratios. Journal of Financial Research, (fall): 249–259

  24. Wei Gang (1998). An empirical study on the dividend distribution of Chinese listed companies. Economic Research Journal, (6): 30–36 (in Chinese)

  25. Wei Gang (2000). An empirical analysis on stock dividend of Chinese listed companies. Securities Market Herald, (11): 23–27 (in Chinese)

  26. Yu Qiao, Cheng Ying (2001). The firm’s dividend policy and stock market fluctuation in China. Economic Research Journal, (4): 32–40 (in Chinese)

  27. Yuan Hongqi (2001). Analysis on dividend policy of Chinese list companies. Research on Financial and Economic Issues, (3): 33–41 (in Chinese)

  28. Zhao Chunguang, Zhang Xueli, Ye Long (2001). The incentive of choice of dividends policy with the empirical evidence from Chinese securities market. Journal of Finance and Economics, (2): 48–53 (in Chinese)

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Yi Yanxin.

Additional information

Translated from Nankai Guanli Pinglun 南开管理评论 (Nankai Business Review), 2006, 9(2): 4–10

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Yi, Y., Ke, D. & Zhang, X. Shareholder wealth effect of dividend policy: Empirical evidence from the Chinese securities market. Front. Bus. Res. China 1, 437–455 (2007). https://doi.org/10.1007/s11782-007-0026-8

Download citation

Keywords

  • dividend policy
  • shareholder wealth effect
  • blockholders

关键词

  • 股利政策
  • 股东财富效应
  • 控股股东