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Cross‐listings and dividend size and stability: evidence from China
Author(s) -
Cheng Zijian,
Cullinan Charles P.,
Liu Zhangxin Frank,
Zhang Junrui
Publication year - 2021
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12579
Subject(s) - cross listing , dividend , dividend policy , china , business , stability (learning theory) , monetary economics , dividend payout ratio , cross country , listing (finance) , financial economics , econometrics , economics , demographic economics , finance , corporate governance , geography , computer science , archaeology , machine learning
Abstract We investigate the relationship between cross‐listings and dividend policy. We find that Chinese cross‐listed firms have lower and more stable dividends than their non‐cross‐listed peers, and that dividends become more stable the longer a company has been cross‐listed. We also find the strength of the cross‐listing/dividend policy relationship varies based on the market where the shares are cross‐listed. The strength of the relationship varies from B‐shares (least strong) to Hong Kong shares (stronger) to American Depository Receipts (strongest). Our results indicate cross‐listings may influence both dividend size and stability, and that this influence can vary by the type of cross‐listing.