Dividend Payment Frequency and Firm Value: Evidence From China

ABSTRACT Our study investigates the effect of dividend payment frequency on firm value in China's A‐share market. We hypothesize that firms with multiple dividend payments exhibit higher valuations, as more frequent payouts may mitigate agency costs, improve operating efficiency, and convey positive signals to the market. Consistent with our prediction, we find that multiple dividend payments correlate with higher firm valuation than a single payment. These results remain robust after a series of robustness tests. Additional analyses provide evidence consistent with the proposed channels. Finally, our cross‐sectional analyses show that this positive effect is more pronounced in non‐family firms, state‐owned enterprises (SOEs), and firms with lower dividend payout ratios. Collectively, our evidence suggests that dividend payment frequency is closely related to firm valuation in emerging markets characterized by a policy‐driven regulatory environment.