High Dividend Rates Can Not Contribute To Long Investment Horizons: The Chinese Evidence
Taiwan Institute of Business Administration
Faculty of Business and Law
School of Business
This paper, based on Campbell (2000), introduces investor sentiment-related variables to a logarithm model, aiming to examine the relationship between dividend rate and investment horizons in the emerging Growth Enterprise Market of China. Using data sample of 243 IPO firms during 2009-2012, the study find that these firms' dividend policies do not contribute to investment horizons in the listing market, and both dividend rates and investment horizons vary across mdustry sectors. In addition, a majority ofthese firms failed to fulfill their dividend policies.