Open AccessContinuous cash dividends, ownership structure and firm value: Evidence from Chinese A-share market
Author(s) -
Qin Qi,
Weijie Li,
Chong Liu,
Huang Yun-cheng,
Changsheng Hu
Publication year - 2022
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0265177
Subject(s) - dividend , business , cash , operating cash flow , cash management , monetary economics , state ownership , dividend policy , enterprise value , value (mathematics) , cash flow statement , market value , finance , economics , emerging markets , machine learning , computer science
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.