Government subsidies, dividend and stock market refinancing of Chinese firms

    Research output: Journal PublicationArticlepeer-review

    4 Citations (Scopus)

    Abstract

    I show that government subsidies facilitate recipient firms’ dividend payout and stock market refinancing in China where there is a mandatory requirement of cash dividend payout for listed firms intending to make seasonal equity offerings. These effects are particularly strong among more financially constrained firms. Although seemingly counter-intuitive, we show that subsidized firms are more likely to make seasonal equity offerings. My findings shed some light on the joint effects of public subsidies and corporate governance policies in emerging market setting.

    Original languageEnglish
    Article number101345
    JournalFinance Research Letters
    Volume37
    DOIs
    Publication statusPublished - Nov 2020

    Keywords

    • China
    • Dividend
    • SEO
    • Subsidies

    ASJC Scopus subject areas

    • Finance

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