| Summary: | 碩士 === 國立政治大學 === 財務管理研究所 === 100 === The main contribution of this article is that I use the variable of development
of capital market as the main reason resulting in the decrease of the likelihood of
companies to pay cash dividends and cash dividends payout ratio, and it also
weakens the announce effect of cash dividends.
There are some results we can see in this investigation. First, through
observing the trend of the percentage of cash-dividend –payer firms to all TWSE
firms and the trend of market value weighted payout ratio, we can see there is no
“disappearing dividends” phenomenon in Taiwan capital market from 1991 to
2010.
Second, the development of capital market not only decreases the likelihood
of companies to pay cash dividends and cash dividends payout ratio, but also
weakens the announce effect of cash dividends.
Third, the more shares held by institutional investors, the weaker announce
effect caused by cash dividends announcement. However, firms with higher
percentage of shares held by local institutional investors are much likely to pay
dividends. It somehow means that cash dividends are preferred and respected.
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