Title :
The Impact of Dividend Policy Preferences on Stock Returns in China A-shape Market
Author :
Yan, Changrong ; Zhang, Dixin
Author_Institution :
Sch. of Bus., Nanjing Univ., Nanjing, China
Abstract :
In this paper, we studied the impact of dividend policy preferences on stock returns of different maturities in China A-sharp market. After classifying all the sample companies according to dividend policy preferences, scales and book-to-market ratios, we used Mann-Whitney test to find the relationship between the dividend policy preferences and the stock returns. In the period 2001.7-2010.6, few Chinese listed companies preferred paying stock bounds but many ones preferred paying either cash dividends or not paying dividends. Companies preferring paying dividends always have higher stock returns than those ones not preferring paying dividends. Further more, preferring mixed dividends could brings higher stock returns in large companies but lower in small companies than preferring cash dividends. Finally, we found that the above conclusions always hold in the cases of choosing different maturities.
Keywords :
stock markets; China A-shape market; Mann-Whitney test; book-to-market ratios; cash dividends; dividend policy preferences; stock returns; Companies; Finance; Modeling; Portfolios; Pricing; Stock markets; Mann-Whitney test; dividend policy; stock return; three-factor model;
Conference_Titel :
Computational Sciences and Optimization (CSO), 2011 Fourth International Joint Conference on
Conference_Location :
Yunnan
Print_ISBN :
978-1-4244-9712-6
Electronic_ISBN :
978-0-7695-4335-2
DOI :
10.1109/CSO.2011.271