Do overpaid dividends drive stock price crash risk?-Reference-Cited by-同舟云学术

Do overpaid dividends drive stock price crash risk?

Published:2024-08-13 Issue: Volume: Page:
ISSN:0954-1985
Container-title:Economics & Politics
language:en
Short-container-title:Economics & Politics

Author:

Ling Xiaoting¹,Shan Yuan George²^ORCID,Wu Wuqing³^ORCID,Zhang Lu⁴,Zhang Xinyue²⁵

Affiliation:

1. Department of Finance China Electronics Corporation (CEC) Shenzhen China

2. Department of Accounting and Finance, UWA Business School The University of Western Australia Perth Western Australia Australia

3. Department of Accounting, School of Business Renmin University of China Haidian District Beijing China

4. Academy of Statistics and Interdisciplinary Sciences, Faculty of Economics and Management East China Normal University Shanghai China

5. School of Management Shandong University Jinan China

Abstract

AbstractWe explore the impact of overpaid dividends on future stock price crash risk. Using a dataset of 2662 firms with 15,416 firm‐year observations of China's A‐share listed firms, our result indicates that overpaid dividends are positively related to the likelihood of future stock price crash risk. The results further suggest that high‐quality corporate governance and financial analyst coverage can moderate the positive effect of overpaid dividends on the crash risk. Moreover, continuous overpaid dividends and state‐owned enterprises with overpaid dividends have a stronger impact on the crash risk, and overpaid dividends are significantly affected by their peer firms.

Funder

National Natural Science Foundation of China

Publisher

Wiley

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/ecpo.12309

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