Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5106999 | International Business Review | 2017 | 12 Pages |
Abstract
Furthermore, changes in dividend payments over time positively affect subsequent changes in foreign shareholding, but the opposite is not true. Our study indicates that foreign institutional investors do not change firms' future dividend payments once they have made their investment choices in China. Moreover, they self-select into Chinese firms that pay high dividends. Our evidence suggests that in an institutional setting where foreign investors have tightly restricted access to local securities markets and a relatively high risk of expropriation by controlling shareholders exists, firms can use dividends to signal good investment opportunities to foreign investors.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Lihong Cao, Yan Du, Jens Ãrding Hansen,