12 research outputs found
Cross-listings and dividend size and stability: evidence from China
We investigate the relationship between cross-listings and dividend policy. We find that Chinese cross-listed firms have lower and more stable dividends than their non-cross-listed peers, and that dividends become more stable the longer a company has been cross-listed. We also find the strength of the cross-listing/dividend policy relationship varies based on the market where the shares are cross-listed. The strength of the relationship varies from B-shares (least strong) to Hong Kong shares (stronger) to American Depository Receipts (strongest). Our results indicate cross-listings may influence both dividend size and stability, and that this influence can vary by the type of cross-listing
The Association Between Dividends and Accruals Quality
This paper responds to a specific gap identified in the prior literature by examining whether dividend paying status and dividend size are associated with accruals quality, using three accrualsâbased earnings quality proxies on a large sample of 2387 firmâyear observations over 17 years in a developing economy, South Africa. Univariate tests are also conducted to identify differences in characteristics between dividend and nonâdividend paying firms, and large and small dividend paying firms. The paper finds that dividend paying status is positively associated with accruals quality. This association remains robust over subâgroups of firms that differ in size, growth, profitability, age, maturity, leverage, capital intensity and propensity to raise new capital. The prior literature is extended by using quintiles of dividend size to further investigate the association between dividend size and accruals quality. The findings include that larger dividend paying firms are associated with better accruals quality, and that this relationship is stronger among firms that pay averageâsized dividends. Additionally, there are significant differences in characteristics between dividend and nonâdividend paying firms and between large and small dividend paying firms. Based on these results, policymakers, regulators, legislators and boards may want to explore the use of dividend policy as a corporate governance mechanism.https://onlinelibrary.wiley.com/journal/183525612021-03-01hj2019Accountin