Ultimate Controlling Shareholders and Dividend Payout Policy in Chinese Stock Market

2013 ◽  
Author(s):  
Jianan Guo
Keyword(s):  
Stock Market ◽  
Payout Policy ◽  
Chinese Stock Market ◽  
Dividend Payout ◽  
Controlling Shareholders

scholarly journals Are dividends disappearing and is the life-cycle theory of dividends relevant to Canadian stock market?

2011 ◽  
Vol 8 (4) ◽  
pp. 444-450
Author(s):  
Sazali Abidin ◽  
Krishna Reddy ◽  
Jiani Wang
Keyword(s):  
Life Cycle ◽  
Stock Market ◽  
Significant Relationship ◽  
Payout Policy ◽  
Industrial Firms ◽  
Dividend Payout ◽  
Listed Firms ◽  
Life Cycle Theory ◽  
Fama And French ◽  
Retained Earnings

We investigated the dividend payout policy of the companies listed in the Canadian stock market to establish the relevancy of life-cycle theory of dividends among the sample stocks. While investigating whether dividend is disappearing in the Canadian stock market, we analyzed the proportion of firms paying cash dividends as in Fama and French (2001) and the aggregate real dividends paid by industrial firms as in DeAngelo, DeAngelo and Skinner (2004). Our sample ranges from 182 firm-years data in 1997 and to 999 firm-years in 2007. For the life-cycle theory of dividends, we also estimate a firm’s stage in its financial life cycle by the amount of its retained earnings as in DeAngelo, DeAngelo and Stulz (2006). Our findings indicate that proportion of dividend paying firms to total firms is on a decline but the aggregate real dividends of dividends payers is increasing. Our findings support the view provided by DeAngelo et. al. (2004) that dividends in Canadian listed firms are not disappearing. In addition, we report a positive and statistically significant relationship between the probability that a firm pays dividends and its earned/contributed capital mix, thus supporting the life-cycle theory of dividends.

Ultimate Controlling Shareholders and Dividend Payout Policy in Chinese Stock Market

2016 ◽  
Vol 19 (02) ◽  
pp. 1650008 ◽  
Author(s):  
Jianan Guo
Keyword(s):  
Cash Flow ◽  
Payout Policy ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Policy Framework ◽  
Cash Dividend ◽  
Control Rights ◽  
Dividend Payout ◽  
Controlling Shareholders ◽  
Listed Firms

Departing from the traditional cash flow rights-dividend policy framework, this study investigates whether the level of control rights and the types of ultimate controlling shareholders (UCSs) of listed firms in China influence their cash dividend payout. We find that the level of control rights is positively associated with both the probability to pay and the level of cash dividend payout, which indicates that UCSs use cash dividends to reduce the agency cost of free cash flow and redirect listed firms’ cash balance. Furthermore, different types of UCSs influence dissimilarly on the controlled firms’ cash dividends, which can be attributed to the backgrounds of these UCSs originating from China’s unique partial share issuance privatization process.

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