CORPORATE DIVIDEND POLICY IN CHINA UNDER MANAGERIAL ENTRENCHMENT

Abstract

The paper empirically analyzes corporate dividend policy under managerial entrenchment ofpublicly traded companies in China using mean T test, logistic regression and multivariate regression analysis methods,. The results indicate that investment opportunity, the proportion ofstate-owned shares, and shares held by managers are the main determinants o f corporate dividend policy. The study further shows that less investment opportunity, higher proportion ofstate-owned shares and shares held by managers are associated with higher amount ofcorporate dividend distribution.