Dividend payout policies in the pre and post split share structure reform in China

This paper examines the motivation of dividend payout policies for Chinese listed firms before and after Split Share Structure Reform in China from corporate governance-related viewpoint. Analysis was carried out using panel data with random effect a sample on A-share market period 2001–2004 (before reform) 2014–2017 (after reform). It is found that (1) incentive tunnelling via by controlling shareholders weaken reform; (2) dividends are taken as measure to reduce agency problems caused free cash flows (3) reform become more stable than those reform. (4) general, reacts positively increase both can be concluded minority shareholder protection signalling rather expropriation contributes literature comparing during full circulation era initiated.