Dividend preference of tradable-share and non-tradable-share holders in Mainland China

Tsz Wan Cheng, Hung Gay Fung, Tak Yan Leung

Research output: Journal article publicationJournal articleAcademic researchpeer-review

36 Citations (Scopus)


Comprehensive data on corporate announcements of Chinese firms allows us to examine the preference for, and determinants of, cash and stock dividends. The results indicate that Chinese public investors prefer stock dividends over cash dividends, which are preferred by large state and legal person shareholders generally. Stock dividends, which do not require an explicit cash outflow from a firm, are found to be positively related to higher earnings, supporting the signalling hypothesis of dividend policy. In an imperfect market, these results have some implications for government regulation of financial markets.
Original languageEnglish
Pages (from-to)291-316
Number of pages26
JournalAccounting and Finance
Issue number2
Publication statusPublished - 1 Jun 2009


  • Cash dividend
  • Dividend signal
  • Non-tradable share
  • Stock dividend

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)


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