The effect of foreign ownership on dividend policy : evidence from China

This study examined the relationship between foreign ownership and dividend policy in the Chinese market. Panel logistic regression was employed to explain the effect of foreign ownership on the choice "to pay" or "not to pay" dividends. Panel model used in this study is construc...

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Main Author:	Yan, XiaoFang
Format:	Thesis
Language:	eng eng
Published:	2018
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7843/1/s821647_01.pdf https://etd.uum.edu.my/7843/2/s821647_02.pdf
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id	my-uum-etd.7843
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdullah, Nur Adiana Hiau
topic	HG Finance
spellingShingle	HG Finance Yan, XiaoFang The effect of foreign ownership on dividend policy : evidence from China
description	This study examined the relationship between foreign ownership and dividend policy in the Chinese market. Panel logistic regression was employed to explain the effect of foreign ownership on the choice "to pay" or "not to pay" dividends. Panel model used in this study is constructed by 142 companies’ data with 1988 observations involving foreign ownership listed on the Shenzhen Stock Exchange from 2003 to 2016. Findings indicate that a higher level of foreign ownership is associated with a significantly higher probability of paying dividend. This finding is consistent to agency theory and clientele effect theory. The significant positive result for retained earnings to total equity provides support to the implication stated in the life cycle theory. However, the signaling theory is not supported as the results show an insignificant relationship between cash flow and dividend payment, and between investment opportunities and dividend payment. The findings of this study indicates that foreign shareholders in the Chinese market have high preference for dividend paying companies, especially for large companies with low leverage. Hence for investors who prefer dividends, they should invest in companies with foreign ownership as the likelihood of these companies to pay dividend is higher.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Yan, XiaoFang
author_facet	Yan, XiaoFang
author_sort	Yan, XiaoFang
title	The effect of foreign ownership on dividend policy : evidence from China
title_short	The effect of foreign ownership on dividend policy : evidence from China
title_full	The effect of foreign ownership on dividend policy : evidence from China
title_fullStr	The effect of foreign ownership on dividend policy : evidence from China
title_full_unstemmed	The effect of foreign ownership on dividend policy : evidence from China
title_sort	effect of foreign ownership on dividend policy : evidence from china
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2018
url	https://etd.uum.edu.my/7843/1/s821647_01.pdf https://etd.uum.edu.my/7843/2/s821647_02.pdf
_version_	1747828275793625088
spelling	my-uum-etd.78432021-08-11T08:14:05Z The effect of foreign ownership on dividend policy : evidence from China 2018 Yan, XiaoFang Abdullah, Nur Adiana Hiau Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This study examined the relationship between foreign ownership and dividend policy in the Chinese market. Panel logistic regression was employed to explain the effect of foreign ownership on the choice "to pay" or "not to pay" dividends. Panel model used in this study is constructed by 142 companies’ data with 1988 observations involving foreign ownership listed on the Shenzhen Stock Exchange from 2003 to 2016. Findings indicate that a higher level of foreign ownership is associated with a significantly higher probability of paying dividend. This finding is consistent to agency theory and clientele effect theory. The significant positive result for retained earnings to total equity provides support to the implication stated in the life cycle theory. However, the signaling theory is not supported as the results show an insignificant relationship between cash flow and dividend payment, and between investment opportunities and dividend payment. The findings of this study indicates that foreign shareholders in the Chinese market have high preference for dividend paying companies, especially for large companies with low leverage. Hence for investors who prefer dividends, they should invest in companies with foreign ownership as the likelihood of these companies to pay dividend is higher. 2018 Thesis https://etd.uum.edu.my/7843/ https://etd.uum.edu.my/7843/1/s821647_01.pdf text eng public https://etd.uum.edu.my/7843/2/s821647_02.pdf text eng public https://sierra.uum.edu.my/record=b1699296~S1 masters masters Universiti Utara Malaysia Abdulkadir, R. I., Abdullah, N. A. H., & Wong, W. C. (2016). 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The effect of foreign ownership on dividend policy : evidence from China

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