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Ownership Structure and Dividend Preference

Author

Listed:
  • Yi-Hua Lin
  • Jeng-Ren Chiou
  • Yenn-Ru Chen

Abstract

Most Chinese listed companies have been transformed from state-owned enterprises; the resulting institutional transformation is characterized by the emergence of highly concentrated ownership and state-owned shares, which may exert an influence on corporate finance. We examine the relationship between ownership structure and cash dividend preference and then reexamine the same relationship with different levels of growth opportunities. The results reveal a positive relationship between cash dividend preference and state ownership, but the same relationship exists only in firms facing lower levels of investment opportunity. However, the ratio of employee shares and tradable shares correlates significantly and negatively with cash dividend preference.

Suggested Citation

  • Yi-Hua Lin & Jeng-Ren Chiou & Yenn-Ru Chen, 2010. "Ownership Structure and Dividend Preference," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(1), pages 56-74, January.
  • Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:56-74
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    References listed on IDEAS

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