Business, Management and Accounting
8 years ago

Investors' demand for dividends impacts cash dividend policy of Chinese companies.

1 view
Industrial Engineering and Engineering Management
Analysis of the Cash Dividend Policy of Chinese Public Companies from the Perspective of Corporate Finance Behavior
Gong Chun-xia

Paper Summary

The article explores why Chinese public companies pay dividends by combining dividend catering theory with the country's unique institutional background. By studying investors' behavior and cash dividend demands, the researchers found that investors are willing to pay more for stocks of companies that do not pay dividends. Additionally, the impact of investors' dividend demands on companies' tendency to pay cash dividends is more significant for mature companies.

Related papers

Business, Management and Accounting
8 years ago

Catering theory of dividends influences shareholder behavior on Warsaw Stock Exchange

Corporate Governance
Working Capital
Value-based Management
Business, Management and Accounting
5 years ago

Russian stock market sees surge in dividend payments, boosting shareholder returns.

Corporate Governance
Socio-Economic Development
Value-based Management
Business, Management and Accounting
6 years ago

Investors' Demands Drive Companies to Pay Dividends, Boosting Profit Potential.

Working Capital
Financial Management
Corporate Governance