Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2019 | vol. 15, iss. 5 | 608--620
Tytuł artykułu

Effects of the Business Model on Dividend Policy: Evidence from US Banks

Warianty tytułu
Języki publikacji
Using a large panel of US bank holding companies, we provide one of the first examinations on the relation between bank business model and dividend policy. We document consistent evidence of higher dividends for diversified banks. Private banks that engage in non-traditional banking activities tend to pay more dividends than public banks do. This positive effect is more pronounced for medium banks, following small banks. However, we do not observe any relation between business model and dividend payment for large banks. The effect of diversification on the dividend is mitigating during the crisis. Our evidence remains unchanged with alternative measures as well as econometric approaches. Our study is of interest to regulators and policymakers who are concerns about the bank business model. (original abstract)
Opis fizyczny
  • Banking University Ho Chi Minh, Vietnam
  • Acharya, V. V., Le, H. T., & Shin, H. S. (2016). Bank capital and dividend externalities. Review of Financial Studies, 30(3), 988-1018.
  • Acharya, V. V., & Mora, N. (2015). A crisis of banks as liquidity providers. The Journal of Finance, 70(1), 1-43.
  • Berger, P. G., & Ofek, E. (1995). Diversification's effect on firm value. Journal of financial economics, 37, 39-65.
  • Bharath, S., Dahiya, S., Saunders, A., & Srinivasan, A. (2007). So what do I get? The bank's view of lending relationships. Journal of Financial Economics, 85(2), 368-419.
  • Brewer, E. (1989). Relationship between bank holding company risk and nonbank activity. Journal of Economics and Business, 41(4), 337-353.
  • Campa, J. M., & Kedia, S. (2002). Explaining the diversification discount. The Journal of Finance, 57(4), 1731-1762.
  • De Jonghe, O., Diepstraten, M., & Schepens, G. (2015). Banks' size, scope and systemic risk: What role for conflicts of interest?. Journal of Banking & Finance, 61(Supplement 1. Global Trends in Banking, Regulations, and Financial Markets), S3-S13.
  • DeYoung, R., & Roland, K. P. (2001). Product mix and earnings volatility at commercial banks: evidence from a degree of total leverage model. Journal of Financial Intermediation, 10(1), 54-84.
  • DeYoung, R., & Torna, G. (2013). Nontraditional banking activities and bank failures during the financial crisis. Journal of Financial Intermediation, 22, 397-421.
  • Diamond, D. W. (1984). Financial intermediation and delegated monitoring. The Review of Economic Studies, 51, 393-414.
  • Duchin, R. (2010). Cash holdings and corporate diversification. The Journal of Finance, 65, 955-992.
  • Financial Crisis Inquiry Commission (2011). The financial crisis inquiry report (Cosimo, Inc.).
  • Gandhi, P., Kiefer, P.C., & Plazzi, A. (2016). A false sense of security: why U.S. banks diversify and does it help? SSRN Scholarly Paper, Social Science Research Network, Rochester, NY.
  • Heckman, J. J., Ichimura, H., & Todd, P. E. (1997). Matching as an econometric evaluation estimator: Evidence from evaluating a job training programme. The review of economic studies, 64, 605-654.
  • Holod, D., & Peek, J. (2010). Capital constraints, asymmetric information, and internal capital markets in banking: new evidence. Journal of Money, Credit and Banking, 42, 879-906.
  • Holod, D., & Torna, G. (2018). Do community banks contribute to international trade? Evidence from U.S. data. Journal of International Financial Markets, Institutions and Money, 57, 185-204.
  • Jordan, B. D., Liu, M. H., & Wu, Q. (2018). Organizational form and corporate payout policy. Journal of Financial and Quantitative Analysis, 53, 789-813.
  • Laeven, L., & Levine, R. (2007). Is there a diversification discount in financial conglomerates?. Journal of Financial Economics, 85, 331-367.
  • Mancinelli, L., & Ozkan, A. (2006). Ownership structure and dividend policy: Evidence from Italian firms. The European Journal of Finance, 12, 265-282.
  • Morgan, D. P. (2002). Rating banks: risk and uncertainty in an opaque industry. The American Economic Review, 92, 874-888.
  • Rosenbaum, Paul R., & Rubin, D. B. (1983). The central role of the propensity score in observational studies for causal effects. Biometrika, 70, 41-55.
  • Saunders, A., & Cornett, M. M. (2008). Financial institutions management: a risk management approach (McGraw-Hill Education).
  • Short, H., Zhang, H., & Keasey, K. (2002). The link between dividend policy and institutional ownership. Journal of Corporate Finance, 8, 105-122.
  • Stiroh, K. J. (2004). Diversification in banking: is noninterest income the answer?. Journal of Money, Credit and Banking, 36, 853-882.
  • Stiroh, K. J., & Rumble, A. (2006). The dark side of diversification: The case of US financial holding companies. Journal of Banking and Finance, 30, 2131-2161.
  • Tran, D. V. (2019). Activity strategies and bank liquidity creation. SSRN Scholarly Paper, Social Science Research Network, Rochester, NY.
  • Tran, D. V. (2019). Economic policy uncertainty, corporate governance and bank opacity. SSRN Scholarly Paper, Social Science Research Network, Rochester, NY.
  • Tran, D. V., & Ashraf, B. N. (2018). Dividend policy and bank opacity. International Journal of Finance & Economics, 23, 186-204.
  • Tran, D. V., Hassan, M. K., & Houston, R. (2019). How does listing status affect bank risk? The effects of crisis, market discipline and regulatory pressure on listed and unlisted BHCs. The North American Journal of Economics and Finance, 49, 85-103.
  • Tran, D. V., Hassan, M. K., & Houston, R. (2019). Discretionary loan loss provision behavior in the US banking industry. Review of Quantitative Finance and Accounting, 55, 605-645.
  • Yasuda, A. (2005). Do bank relationships affect the firm's underwriter choice in the corporatebond underwriting market?. The Journal of Finance, 60, 1259-1292.
Typ dokumentu
Identyfikator YADDA

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.