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

Qi, Qin; Li, Weijie; Liu, Chong; Huang, Yuncheng; Hu, Changsheng · PLoS One · 2022

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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.

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