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Dual-class share structure on the dividend payout policy: Evidence from China Concepts Stocks by Hamid Beladi; May Hu; Silei Li; JingJing Yang is a Economics, Econometrics and Finance article available to read on EtoBox.

What is Dual-class share structure on the dividend payout policy: Evidence from China Concepts Stocks about?

This study investigates the impact of the dual-class share structure on the dividend pay-out policy for China Concepts Stocks listed on the US stock exchanges. Using a unique and hand-collected dataset, we find that the dual-class share structure negatively affects the propensity to pay dividends and the dividend payout ratios. Among firms with dual-class share structures, the divergence between voting and cash-flow rights also negatively affects the propensity to pay dividends and the dividend payout ratios. Furthermore, these dual-class firms are more susceptible to the tunneling to controlling shareholders. Our findings highlight the potential cost of adopting dual-class share structures in China, and the importance of external monitoring for Chinese US-listed firms with dual-share structure.

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Author

Hamid Beladi; May Hu; Silei Li; JingJing Yang

Publisher

Elsevier BV

Published

2022

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)