Journal of Financial Risk Management

Volume 5, Issue 3 (September 2016)

ISSN Print: 2167-9533   ISSN Online: 2167-9541

Google-based Impact Factor: 1.92  Citations  

Whether Cash Dividend Policy of Chinese Listed Companies Caters to Investors’ Preference

HTML  XML Download Download as PDF (Size: 378KB)  PP. 161-170  
DOI: 10.4236/jfrm.2016.53016    2,481 Downloads   4,369 Views  Citations
Author(s)

ABSTRACT

From the perspective of catering theory of dividends, this paper studies the relationship between cash dividend policy and investors’ preference, and also the relationship between cash dividend policy and enterprise features, making use of 2008-2014 data of listed companies in Shanghai and Shenzhen Exchanges. Our research discovers that rising corporate profitability and scale increase willingness to pay cash dividends of listed companies, whereas increasing investment opportunities significantly reduce the cash dividend payment. We create the variables of propensity to pay and dividend premium. The 2008-2014 dividend premium in Shanghai Exchange is negative and is negatively correlated with propensity to pay, showing that cash dividend policy still does not cater to investors’ preference after the completion of no-tradable shares reform.

Share and Cite:

Zhan, X. (2016) Whether Cash Dividend Policy of Chinese Listed Companies Caters to Investors’ Preference. Journal of Financial Risk Management, 5, 161-170. doi: 10.4236/jfrm.2016.53016.
Journals Menu
Follow SCIRP
Contact us
customer@scirp.org
WhatsApp +86 18163351462(WhatsApp)
Click here to send a message to me 1655362766
Paper Publishing WeChat

Copyright © 2025 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.