Trading restrictions and firm dividends: The share lockup expiration experience in China |
| |
| Institution: | 1. School of Finance, Southwestern University of Finance and Economics, Wenjiang District, Chengdu, Sichuan, China;2. Accounting and Finance Department, College of Business & Public Policy, University of Alaska Anchorage, Anchorage, AK 99508-4614, USA;1. Faculty of Business Administration, Kyoto Sangyo University, Motoyama, Kamigamo, Kita-ku, Kyoto 603–8555, Japan;2. Faculty of Economics, Osaka Sangyo University, Osaka 574–8530, Japan;1. School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China;2. School of Business, Renmin University of China, Beijing 100872, China;3. Department of Finance, Western Kentucky University, Bowling Green, KY 42101, USA;1. Faculty of Business and Economics, University of Melbourne, Parkville, VIC 3010, Australia;2. School of Economics, Merewether Building, The University of Sydney, NSW 2006, Australia |
| |
| Abstract: | Chinese firms experienced a substantial reduction in nontradable shares following the Split-Share Structure Reform that began in 2005. The decrease in nontradable shares, or increase in share tradability, is associated with a decline in the firms’ cash dividend payouts. The positive association is attenuated in firms with fewer financial constraints, only weakly affected by firm governance, and not affected by investment opportunities or controlling shareholder type. The results highlight the fact that firms disgorge cash to compensate shareholders for trading restrictions and conclude that dividends persist when firms have easier access to external financing. These findings are robust to alternative definitions of nontradable shares, after controlling for firm fixed effects and omitted changing firm characteristics. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
