Dividends and management promotion—Evidence from internal labor market in an emerging economy. (22nd May 2020)

• Record Type: Journal Article
• Authors: Yang, Dan; Cheng, Linyin; Wang, Guojun; Wang, Yuetang
• Is Part Of: International review of finance. Volume 21:Number 3(2021)
• Page Start: 1100
• Page End: 1105
• Publication Date: 2020-05-22
• Subjects: China -- dividend payout -- internal labor market -- management promotion -- state‐owned enterprises; Finance -- Periodicals; Financial institutions -- Periodicals; 332.673
• DOI: 10.1111/irfi.12312
• Languages: English
• ISSNs: 1369-412X

Abstract

Abstract: Top management in state‐owned enterprises (SOEs) works in a typical internal labor market and seeks political promotion after the tenure. By using a sample of Chinese listed SOEs for 2003–2013, this paper documents that top management in SOEs has motivations to trade‐off its own promotion through increasing dividend payout, and the evidence becomes more significant when SOEs report better financial performance than their industry averages.