Understanding Bank Payouts during the Crisis of 2007-2009 Academic Article uri icon

abstract

  • Abstract We study U.S. banks payout policy in 20072008. We benchmark these payouts against payouts before the crisis, measure stock price reactions to announcements of dividend changes, and analyze changes in the relation between payout growth and future performance. Further, we examine cross-sectional variation in banks payout policy to gauge the possible motives underlying banks payout decisions in 20072008. We do not find that banks that have a higher willingness to take risk or that have higher incentives to undertake asset substitution use their payout policy to engage in more wealth transfer compared to other banks. (JEL G21, G24, G28, G32, G35). Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

published proceedings

  • REVIEW OF CORPORATE FINANCE STUDIES

altmetric score

  • 1.35

author list (cited authors)

  • Cziraki, P., Laux, C., & Loranth, G.

citation count

  • 2

complete list of authors

  • Cziraki, Peter||Laux, Christian||Loranth, Gyongyi

editor list (cited editors)

  • Ellul, A.

publication date

  • January 2024