Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270163 
Authors: 
Year of Publication: 
2021
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 9 [Issue:] 1 [Article No.:] 1982234 [Year:] 2021 [Pages:] 1-21
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
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.
Subjects: 
banks
dividends
payout policy
risk
JEL: 
G28
G34
G38
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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