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Continuous cash dividends, ownership structure and firm value: Evidence from Chinese A-share market

Author

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  • Qin Qi
  • Weijie Li
  • Chong Liu
  • Yuncheng Huang
  • Changsheng Hu

Abstract

This paper examines the relation between continuous cash dividends, ownership structure and firm value across a sample of 1503 firms listed on Chinese A-share market from 2009 to 2017. The empirical results reveal (1) the positive effect of continuous cash dividends on firm value and that (2) values of both state-owned enterprises controlled by central government (SOECGs) and state-owned enterprises controlled by local governments (SOELGs) that distribute continuous cash dividends increase more with ownership concentration than values of those that distribute discontinuous cash dividends; continuous cash dividends fail to mediate the effect of ownership concentration on firm value in private firms (PFs). The results are robust.

Suggested Citation

  • Qin Qi & Weijie Li & Chong Liu & Yuncheng Huang & Changsheng Hu, 2022. "Continuous cash dividends, ownership structure and firm value: Evidence from Chinese A-share market," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-18, March.
    • Handle: RePEc:plo:pone00:0265177
    DOI: 10.1371/journal.pone.0265177
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    References listed on IDEAS

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    1. Denis, Diane K. & McConnell, John J., 2003. "International Corporate Governance," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 38(1), pages 1-36, March.
    2. Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    3. Fuxiu Jiang & Kenneth A Kim, 2020. "Corporate Governance in China: A Survey [The role of boards of directors in corporate governance: a conceptual framework and survey]," Review of Finance, European Finance Association, vol. 24(4), pages 733-772.
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    1. Gao, He & Lu, Junwei & Yang, Laifeng & Cheng, Zijian & Liu, Zhangxin (Frank), 2026. "Cutting corners, cutting dividends: Evidence from reverse mergers in China," Emerging Markets Review, Elsevier, vol. 70(C).

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