Influence of investment fund on stock dividend policy: evidence from Chinese listed firms

This paper empirically studies stock dividend from the perspective of the investment fund for the first time, using ordered choice model by the sample of listed companies in the Chinese capital market after the split share structure reform. The results are different from the developed capital market funds on the dividend payment, our funds tend to hold company stock that has the potential to pay stock dividend. The more the investment funds increase the number of shares of listed companies in the fourth season, the more likely the companies issue stock dividends; the more the investment funds hold the number of shares of listed companies at the year end, the more likely the companies issue stock dividends. In the current atmosphere of Chinese capital market speculation, the fund exercises shareholder activism to affect stock dividend policy for the short-term investment income. The results provide the reference for the investors' investment decision-making and the management's regulatory decision-making.