Research Article
Non-Controlling Majority Shareholder Exit Threats, Investor Types and Cash Dividend Policy
@INPROCEEDINGS{10.4108/eai.2-12-2022.2328859, author={Yifan Zang}, title={Non-Controlling Majority Shareholder Exit Threats, Investor Types and Cash Dividend Policy}, proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China}, publisher={EAI}, proceedings_a={BDEIM}, year={2023}, month={6}, keywords={exit threat; institutional investors; nature of property rights; cash dividends}, doi={10.4108/eai.2-12-2022.2328859} }- Yifan Zang
Year: 2023
Non-Controlling Majority Shareholder Exit Threats, Investor Types and Cash Dividend Policy
BDEIM
EAI
DOI: 10.4108/eai.2-12-2022.2328859
Abstract
This paper focuses on the impact of exit threat of non-controlling majority shareholders on the level of change of cash dividends of enterprises, using the data of Chinese listed companies from 2006 to 2015 as a sample to conduct an empirical study. The results show that: (1) Non-controlling majority shareholders can play a supervisory role over management and controlling shareholders through the governance mechanism of exit threat, promoting the improvement of the level of cash dividends in the current year and adjusting the current cash dividend policy which is not conducive to their own interests. (2) Institutional investors have more expertise and information, making the impact of their exit threat on cash dividend changes more significant. (3) Compared to SOEs, non-SOEs have a more significant governance effect on dividend policy due to the threat of exit by their non-controlling majority shareholders, as they are more influenced by share price movements in the capital market.