Abstract
We 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.
| Original language | English |
|---|---|
| Pages (from-to) | 7-58 |
| Number of pages | 52 |
| Journal | Economics and Politics |
| Volume | 37 |
| Issue number | 1 |
| DOIs | |
| State | Published - Mar 2025 |
Keywords
- China
- analyst coverage
- corporate governance
- overpaid dividends
- stock price crash risk