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Continuous cash dividends, ownership structure and firm value: Evidence from Chinese A-share market

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  • Qin Qi
  • Weijie Li
  • Chong Liu
  • Yuncheng Huang
  • Changsheng Hu

Abstract

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.

Suggested Citation

  • Qin Qi & Weijie Li & Chong Liu & Yuncheng Huang & Changsheng Hu, 2022. "Continuous cash dividends, ownership structure and firm value: Evidence from Chinese A-share market," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-18, March.
    • Handle: RePEc:plo:pone00:0265177
    DOI: 10.1371/journal.pone.0265177
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