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Private placements, cash dividends and interests transfer: Empirical evidence from Chinese listed firms

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  • Zhao, Yu Fang
  • Xia, Xin Ping
  • Tang, Xiang Xi
  • Cao, Wei
  • Liu, Xiao Yuan
  • Fan, Ying Han

Abstract

In this paper, the relationship between private placements of common stocks and cash dividends for Chinese listed firms is investigated. It finds that Chinese listed firms pay more cash dividends after private placements than do those that are not involved in placements. Firms with large shareholders participating in private placements pay more cash dividends than those without large shareholder participation. These results indicate that the firms controlled by large shareholders have a high propensity for interests transfer in their cash dividend policies.

Suggested Citation

  • Zhao, Yu Fang & Xia, Xin Ping & Tang, Xiang Xi & Cao, Wei & Liu, Xiao Yuan & Fan, Ying Han, 2015. "Private placements, cash dividends and interests transfer: Empirical evidence from Chinese listed firms," International Review of Economics & Finance, Elsevier, vol. 36(C), pages 107-118.
    • Handle: RePEc:eee:reveco:v:36:y:2015:i:c:p:107-118
    DOI: 10.1016/j.iref.2014.11.011
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    Cited by:

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    2. Paul McGuinness & Kevin Lam & João Vieito, 2015. "Gender and other major board characteristics in China: Explaining corporate dividend policy and governance," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 989-1038, December.
    3. Jing Lin & Steven X. Zheng & Mingshan Zhou, 2020. "Wealth transfer through private placements: Evidence from China," The Financial Review, Eastern Finance Association, vol. 55(2), pages 199-219, May.
    4. Wu, Ming & Ohk, Kiyool & Ko, Kwangsoo, 2019. "Are cash-flow betas really bad? Evidence from the Greater Chinese stock markets," International Review of Financial Analysis, Elsevier, vol. 63(C), pages 58-68.
    5. ElBannan, Mona A., 2020. "Does catering behavior persist? Evidence on dividend sentiment in emerging financial markets," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 350-373.

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