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

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

doi:10.1371/journal.pone.0265177

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

PLoS One. 2022 Mar 17;17(3):e0265177. doi: 10.1371/journal.pone.0265177. eCollection 2022.

Authors

Qin Qi¹, Weijie Li², Chong Liu³, Yuncheng Huang¹, Changsheng Hu⁴

Affiliations

¹ School of Economics and Management, Tongji University, Shanghai, China.
² Institute of Biothermal Science and Technology, University of Shanghai for Science and Technology, Shanghai, China.
³ College of Sciences, Northeastern University, Shenyang, China.
⁴ CICC Fund Management Co., Ltd., Beijing, China.

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.

Publication types

Research Support, Non-U.S. Gov't

MeSH terms

China
Financial Statements*
Ownership*

Grants and funding

This research was funded by Science and Technology Commission of Shanghai Municipality under grant No.18441909700.The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.