재무연구 제 권 호 (2011년 9월)
Asian Review of Financial Research, Vol., No..
pp.1035~1056
pp.1035~1056
Relationships Between Corporate Shareholdings and Cash Dividend : Evidence from Firms in China and Korea
Yu, Jianing School of Finance, Renmin University of China, School of Business Administration
Kim, Sunghwan School of Business Administration, Kyungpook National University
Jeon, Seongbae School of Business Administration, Kyungpook National University
In this paper we investigate the effects of corporate ownership structure on dividend policy in the two different economic regimes: The People’s Republic of China and The Republic of Korea. We compare the ownership structure and financial status of firms, build a model to compare the effects of different ownership structure and analyze the determinants of corporate cash dividend policy in China and Korea. As a result, we have found that the preferences for dividend of major shareholders of firms in both countries are quite different, that dividend level in China has a significant and positive relationship with the largest shareholder’s and state ownership, while dividend level in Korea does not, and that dividend per share has a positive relationship with earning per share but without any relationship with cash ratio in China, while it has a positive relationship with cash ratio but without any relationship with earning per share in Korea.
Yu, Jianing
Kim, Sunghwan
Jeon, Seongbae
In this paper we investigate the effects of corporate ownership structure on dividend policy in the two different economic regimes: The People’s Republic of China and The Republic of Korea. We compare the ownership structure and financial status of firms, build a model to compare the effects of different ownership structure and analyze the determinants of corporate cash dividend policy in China and Korea. As a result, we have found that the preferences for dividend of major shareholders of firms in both countries are quite different, that dividend level in China has a significant and positive relationship with the largest shareholder’s and state ownership, while dividend level in Korea does not, and that dividend per share has a positive relationship with earning per share but without any relationship with cash ratio in China, while it has a positive relationship with cash ratio but without any relationship with earning per share in Korea.
