TY  - JOUR
AB  - Purpose The purpose of this paper is to investigate Chinese stock market reaction to the announcements of dividend reductions and omissions.Design/methodology/approach The data sets cover the period from 1990 to 2009. A rolling portfolio approach is performed and the Fama–French three-factor model is used to calculate the post-announcement long-term abnormal returns. The matching method and the sub-sample tests are used to examine the robustness.Findings After controlling for firm size, the unexpected earnings and government ownership, no evidence of the dividend announcement drift is found. The results also show that the government ownership and the large trading play a role in explaining the post-announcement abnormal returns.Originality/value This is the first study concerning the Chinese market that examines the Chinese stock market reaction to dividend cut and omission using a long-time period of data.
VL  - 45
IS  - 3
SN  - 0307-4358
DO  - 10.1108/MF-03-2018-0134
UR  - https://doi.org/10.1108/MF-03-2018-0134
AU  - Dong Jing
AU  - Li Hui
AU  - Liu Kerry
AU  - Wu Xiaohui
PY  - 2019
Y1  - 2019/01/01
TI  - The stock market reaction to dividend reductions and omissions in China
T2  - Managerial Finance
PB  - Emerald Publishing Limited
SP  - 381
EP  - 398
Y2  - 2024/04/23
ER  -