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Dividends and management promotion—Evidence from internal labor market in an emerging economy

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  • Dan Yang
  • Linyin Cheng
  • Guojun Wang
  • Yuetang Wang

Abstract

Top management in state‐owned enterprises (SOEs) works in a typical internal labor market and seeks political promotion after the tenure. By using a sample of Chinese listed SOEs for 2003–2013, this paper documents that top management in SOEs has motivations to trade‐off its own promotion through increasing dividend payout, and the evidence becomes more significant when SOEs report better financial performance than their industry averages.

Suggested Citation

  • Dan Yang & Linyin Cheng & Guojun Wang & Yuetang Wang, 2021. "Dividends and management promotion—Evidence from internal labor market in an emerging economy," International Review of Finance, International Review of Finance Ltd., vol. 21(3), pages 1100-1105, September.
    • Handle: RePEc:bla:irvfin:v:21:y:2021:i:3:p:1100-1105
    DOI: 10.1111/irfi.12312
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    References listed on IDEAS

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