Bank stability and dividend policy

Cogent Economics & Finance

Dung Viet Tran¹ 

[1] Saigon International School of Business, Banking University Ho Chi Minh City, Ho Chi Minh City, Vietna;

关键词: banks;    dividends;    payout policy;    risk;    Codes: G21;    G28;    G34;    G38;   

DOI  :  10.1080/23322039.2021.1982234

来源: Taylor & Francis

【 摘 要 】

Relying on a US bank sample, we document the double-edged sword of dividends on the bank's riskiness. Paying dividends exposes banks to stricter market discipline, then decreases the risk-taking behaviors of bank management compared with non-payers, consistent with the Dividend-Stability Channel. However, among banks that pay dividends, excessive dividends makes them riskier, consistent with the Dividend-Fragility Channel. Our results remain unchanged due to a battery of robustness testings.

【 授权许可】

CC BY