Title

Cross-listings and dividend size and stability: evidence from China

Document Type

Article

Keywords

Cross-Listing; Corporate Governance; Dividend Size; Dividend Stability; Hong Kong Stock Exchange; American Depository Receipts

Identifier Data

https://doi.org/10.1111/acfi.12579

Publisher

Wiley

Publication Source

Accounting and Finance Association of Australia and New Zealand

Rights Management

© 2019 Accounting and Finance Association of Australia and New Zealand

Abstract

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.

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