Variable

Definition

Dependent variable

Div_Yield

Cash dividends per share/Price per share

Key Testing Variables (Key Proxy)

IPO_RI

= 1 if there is IPO or rights issue in current years or last year

= 0 otherwise

Largest

= 1 if the majority shareholders hold more than 50% of shares

= 0 otherwise

Gov

=1 if the company’s dominant shareholder is the government

= 0 otherwise

Controlling variables

Size

Natural log of total assets

Leverage

Total liabilities/total assets

Std Earnings

Mean absolute deviation from the mean of net income/ Mean of total assets over the period

Div_Stock

= 1 if the company distributes the stock dividend in the same year;

= 0 otherwise;

ROE

Net Income/Equity