Effect Of Cross-Listing On Cash Dividend Policy

From 1970s on, with the liberalization and globalization of capital market, the increasing number of Chinese-funded enterprise listing abroad. As the international financial center of Asia, Hong Kong SAR is more attractive to mainland based corporations in the terms of cultural origin and financing convenience, thus state-owned enterprise that finalizing reform of non-tradable shares initialize public offering in HKEX. As one of the most significant financial policies, dividend policy is under concerned by scholars. Since the first dividend hypothesis has been raised up by Lintner in 1956, there is still no conclusion about dividend policy, and mysterious of dividend remain to be resolved. Though scholars home and abroad have been looking into factors effecting dividend policy numerously, present research only center in single market. And is there anything different if a company dual listed? Is cross-listing can improve the dividend policy? Is there any difference and same among factors effecting dual-and-single listing companies? And that is why we try to figure this topic out.This article selects data of corporations cross-listed on AH and AB market, matching them with their comparable corporations in the method of peer company principal. Then we research whether the cross-listing could affect cash dividend policy positively, which could express in three dimensions, including dividend per share, dividend payout ratio and propensity to pay, with regression analysis. In the mean time, we still study the factor that affect cash dividend policy in AH cross-listing corporations and AB cross-listing corporations and also the difference among them.We could draw a conclusion that cross-listing do have some positive effect on cash dividend policy, in particular more comprehensive on AH corporations. For AH corporations, in the terms of average index, cross-listing do increase dividend per stock, dividend payout ratio and propensity to pay, however, it is not significant for PROP; As for AB corporations, in the terms of average index, cross-listing do increase those three aspects above. And at last, profitability, financial standing, cash-flow adequacy, dividend sustainability, growth opportunity and operating efficiency are the factors that effect dividend policy.