Zhang, Xinyi; Cui, Chenyu; Xie, Deren - In: China journal of accounting studies 8 (2020) 3, pp. 470-494
Dividends have long been perceived as a way for firms to reward investors. However, managers are likely to inflate return on equity (ROE) by paying out dividends because doing so reduces owners’ equity. We utilise performance-vesting equity incentive plans that adopt ROE as the performance...