Abstract
Cash dividend distribution transmits some information of earnings persistence of listed company, but the analysis on the influence of cash dividend distribution on earnings persistence is still not enough. Based on the data of Chinese listed companies from 2003 to 2009, this article tests the impact of cash dividend distribution on earnings persistence of companies. The empirical results are as follows: in general, cash dividend distribution has a negative effect on earnings persistence of company, so cash dividend distribution of listed company is more a tool for tunneling by controlling shareholders; but among companies which allocate cash dividend at the current term, the impact on earnings persistence varies with cash dividend payout ratio levels; relative to moderate levels of cash dividend payments, low levels of cash dividend payments have significant negative impact on earnings persistence, but high levels of cash dividend payments have no obvious effect on earnings persistence.
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Acknowledgments
This work was supported by the National Social Science Foundation of China (07AJL005), Program for Changjiang Scholars and Innovative Research Team in University (IRT0916), and Science Fund for Innovative Groups of Natural Science Foundation of Hunan Province of China (09JJ7002).
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Zeng, Zj., Yang, Wy., Luo, Cq. (2013). A Study on the Impact of Cash Dividend Distribution on Earnings Persistence of Listed Company. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38442-4_2
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DOI: https://doi.org/10.1007/978-3-642-38442-4_2
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