Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 14, 2017 erstellt
Beschreibung:
By exploring a natural experiment where the Chinese regulatory body introduced a dividend regulatory change, this paper investigates wealth effects of dividend regulation which increases firms' dividends. The efficient contract viewpoint of dividends suggests that the observed dividend level is associated with firm value maximization. This viewpoint predicts that any dividend regulatory change will trigger negative market reactions. The alternative viewpoint suggests that contract failure may occur and (minority) shareholders do not extract sufficient dividends, which predicts that regulatory changes increasing firms' dividends will generate positive market reactions. Consistent with the latter viewpoint, I find dividend regulation enhances shareholders' wealth