Volume 13 No. 1, June 2014
ARTICLE INFO
Article History:
Received: 05 September 2013
Accepted: 22 March 2014
Published: 30 June 2014
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 13 NO. 1, JUNE 2014
CORPORATE GOVERNANCE AND CASH DIVIDEND POLICY: EVIDENCE FROM CHINESE IPOs
Nirosha Hewa Wellalage, Fitriya Fouzi, Gaoxiang Wang, Abdul Basyith
Department of Finance, The University of Waikato, New Zealand
Fakultas Eiconomi, TheUniversitas Muhammadiyah, Indonesia
Department of Finance, The University of Waikato, New Zealand
Fakultas Eiconomi, TheUniversitas Muhammadiyah, Indonesia
ABSTRACT
This paper investigates the relationship between corporate governance mechanisms and cash dividend payment in newly listed firms in China. Using 142 initial public offerings (IPO) listed on the Shenzhen Stock Exchange (SZSE), a dynamic panel Tobit regression is employed. The result shows that large, profitable IPOs with large boards and a high proportion of independent and female directors and CEO duality are willing to pay high dividends to their shareholders. This study indicates the requirement for the promulgation or streamlining of corporate laws in emerging markets to reduce the possibility of expropriation of minority shareholders by politically powered large shareholders.
Keywords: Corporate governance, Initial Public offerings (IPO), China
Keywords: Corporate governance, Initial Public offerings (IPO), China