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Does high dividend payout protect investors?

A case study of Chihong Zinc & Germanium


This paper studies the relationship between dividend payout and investor protection through the case of Chihong Zinc & Germanium’s (Chihong) reform of nontradable shares. Results show that Chihong’s nontradable share reform integrated with equity offering may usurp the interest of small shareholders. Statistics manifest that market responds negatively to this type of dividend allocation. Managerial suggestions are also provided.


以股权分置改革为背景, 研究驰宏锌锗的股利分配行为与投资者利益保护的关系。 结果表明, 驰宏锌锗的分置改革与定向增发导致股利分配有大股东套现和侵占中小股东利益之嫌。 股利分配事件研究的结果表明, 市场呈消极反应。 因此, 提出相关맜理变革建议。


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Correspondence to Xianhua Zhou.

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Zhou, X., Lü, C. Does high dividend payout protect investors?. Front. Bus. Res. China 2, 417–439 (2008).

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  • nontradable shares reform
  • expropriation
  • dividend payout


  • 股权分置改革
  • 利益侵占
  • 股利分配