| Author: | 朱敏 Zhu, Min |
| Title: | 股利政策的代理理论新解 : 内地上市的中国公司与香港上市的中国公司的比较 Gu li zheng ce de dai li li lun xin jie : nei di shang shi de Zhongguo gong si yu Xianggang shang shi de Zhongguo gong si de bi jiao |
| Other Title: | The agency explanations of dividend policies : a comparison between domestically listed Chinese firms and Hong Kong listed Chinese firms |
| Degree: | D.Mgt. |
| Year: | 2008 |
| Subject: | Hong Kong Polytechnic University -- Dissertations. Dividends -- China -- Hong Kong. Dividends -- China. |
| Department: | Graduate School of Business |
| Pages: | xiii, 153 leaves ; 30 cm. |
| Language: | Chinese |
| Abstract: | La Porta, Lopez, Shleifer, & Vishny (2000) (hereinafter LLSV) hypothesize that cash dividend payout is either an outcome of strong shareholder protection or a substitute for weak shareholder protection, and presented evidence consistent with the outcome hypothesis. In addition, Mitton (2004) provides further evidence that better corporate governance is associated with higher dividend payout at the firm level. However, Jiraporn (2004) reports a negative relationship between cash dividend payout and corporate governance, which is in line with the substitute model. Although Chinese firms listed domestically or overseas operate in the same business environment of an emerging market, they are subject to different regulatory oversight, different listing and information disclosure requirements, and have different investor bases. A sample of domestically listed and Hong Kong listed firms will provide us with a rich setting to examine the impact of both internal and external corporate governance mechanisms on dividend payout policies. In particular, the outcome model would mean that the differences in shareholder protection would lead to a higher payout ratio for Hong Kong listed firms than domestically listed firms. However, domestically listed firms have stronger incentives to establish their reputation by adopting a high dividend payout policy as a signal to the market in order to better attract external capital, especially if they anticipate good investment opportunities in the future. Our sample would allow us to test these competing hypotheses. Following LLSV (2000), we use five alternative dividend payout measures: cash dividend over net income, cash dividend over net operating cash flows, cash dividend over net sales, cash dividend over total assets, and dividend yield. Corporate governance is measured by ownership structure, board composition, the existence of management incentive, and the quality of information disclosure. Based on a sample of 2,721 observations for the period of 2003 to 2006, we have the following major findings: 1. Firms listed in Hong Kong have higher payout ratios than do domestically listed firms, consistent with the outcome hypothesis in LLSV (2000). 2. The level of shareholder protection and internal corporate governance mechanisms both influence dividend payout policies. Overall, the level of legal protection has more influence than internal corporate governance mechanisms, which is consistent with Mitton (2004). Furthermore, internal governance mechanisms are positively associated with dividend payout ratios when legal protection is weak, suggesting that the external and internal mechanisms serve as substitutes for each other. 3. When the sample is divided according to their listing locations, we find a much weaker relationship between dividend payout and internal governance mechanisms for the sub-sample of HK listed firms than that for the domestically listed sub-sample. In other words, the higher payout policies adopted by the HK listed firms are mainly driven by the higher level of shareholder protection, while the higher payout policies by domestically listed firms are mainly driven by internal governance mechanisms. Therefore, at the firm level, payout policies among domestically listed firms are more consistent with the outcome hypothesis. |
| Rights: | All rights reserved |
| Access: | restricted access |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| b2291853x.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 14.52 MB | Adobe PDF | View/Open |
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