Does cash dividend smoothing affect the wealth management products purchased by listed companies?
ABSTRACTUsing the regulatory policy on cash dividends implemented in 2013 as the research context, this study develops a difference-in-difference (DID) model using the data of Chinese A-share non-financial listed companies from 2011–2019, and found that cash dividend smoothing reduces the wealth man...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-01-01
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| Series: | China Journal of Accounting Studies |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2023.2143689 |
| _version_ | 1797818383343812608 |
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| author | Xing Liu Xiaoyi Ren |
| author_facet | Xing Liu Xiaoyi Ren |
| author_sort | Xing Liu |
| collection | DOAJ |
| description | ABSTRACTUsing the regulatory policy on cash dividends implemented in 2013 as the research context, this study develops a difference-in-difference (DID) model using the data of Chinese A-share non-financial listed companies from 2011–2019, and found that cash dividend smoothing reduces the wealth management products (WMPs) purchased by companies. Channel tests demonstrated that cash dividend smoothing reduces the company’s WMPs by increasing the financial leverage and attracting independent-type institutional investors to exert debt governance effect and institutional investor governance effect. Additional analysis found that cash dividend smoothing has a greater effect on WMPs when there are serious managerial agency problems within the firm, the nature of ownership is private, and in regions with dense branches of financial institutions. More importantly, cash dividend smoothing was found to alleviate the crowding-out effect of WMPs on industrial investment and help return the firms’ capital to industrial operations. |
| first_indexed | 2024-03-13T09:07:12Z |
| format | Article |
| id | doaj.art-c7964b6cdf3f4c5a8ed9f24af5973133 |
| institution | Directory Open Access Journal |
| issn | 2169-7213 2169-7221 |
| language | English |
| last_indexed | 2024-03-13T09:07:12Z |
| publishDate | 2023-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | China Journal of Accounting Studies |
| spelling | doaj.art-c7964b6cdf3f4c5a8ed9f24af59731332023-05-28T04:00:23ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212023-01-0111115918310.1080/21697213.2023.2143689Does cash dividend smoothing affect the wealth management products purchased by listed companies?Xing Liu0Xiaoyi Ren1Department of Accounting, School of Economics and Business Administration, Chongqing University, Chongqing, ChinaDepartment of Accounting, School of Economics and Business Administration, Chongqing University, Chongqing, ChinaABSTRACTUsing the regulatory policy on cash dividends implemented in 2013 as the research context, this study develops a difference-in-difference (DID) model using the data of Chinese A-share non-financial listed companies from 2011–2019, and found that cash dividend smoothing reduces the wealth management products (WMPs) purchased by companies. Channel tests demonstrated that cash dividend smoothing reduces the company’s WMPs by increasing the financial leverage and attracting independent-type institutional investors to exert debt governance effect and institutional investor governance effect. Additional analysis found that cash dividend smoothing has a greater effect on WMPs when there are serious managerial agency problems within the firm, the nature of ownership is private, and in regions with dense branches of financial institutions. More importantly, cash dividend smoothing was found to alleviate the crowding-out effect of WMPs on industrial investment and help return the firms’ capital to industrial operations.https://www.tandfonline.com/doi/10.1080/21697213.2023.2143689Cash dividend smoothingwealth management productsfinancial leverageinstitutional investorsindustrial investment |
| spellingShingle | Xing Liu Xiaoyi Ren Does cash dividend smoothing affect the wealth management products purchased by listed companies? China Journal of Accounting Studies Cash dividend smoothing wealth management products financial leverage institutional investors industrial investment |
| title | Does cash dividend smoothing affect the wealth management products purchased by listed companies? |
| title_full | Does cash dividend smoothing affect the wealth management products purchased by listed companies? |
| title_fullStr | Does cash dividend smoothing affect the wealth management products purchased by listed companies? |
| title_full_unstemmed | Does cash dividend smoothing affect the wealth management products purchased by listed companies? |
| title_short | Does cash dividend smoothing affect the wealth management products purchased by listed companies? |
| title_sort | does cash dividend smoothing affect the wealth management products purchased by listed companies |
| topic | Cash dividend smoothing wealth management products financial leverage institutional investors industrial investment |
| url | https://www.tandfonline.com/doi/10.1080/21697213.2023.2143689 |
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