Dividend Signaling: Evidence from Bank IPOs

Moral Hazard, Dividends, and Risk in Banks

“…The existing literature about dividend policies in non‐financial firms finds that the following firm characteristics can influence dividend policy: insider–outsider (IO) conflict (Easterbrook, ; Jensen, ; and Faccio et al., ), asset growth (Fama and French, ), size (Fama and French, ; DeAngelo et al., ; and Denis and Osobov, ), profitability (Fama and French, ; DeAngelo et al., ; and Denis and Osobov, ), earned equity (DeAngelo et al., ; DeAngelo and DeAngelo, ; and von Eije and Megginson, ), a recent quotation on the stock market (Cornett et al., ), and the legal framework of the country of origin (La Porta et al., ). Consequently, several control variables are included to allow for the impact of these factors.…”

Moral Hazard, Dividends and Risk in Banks

“…The existing literature about dividend policies in nonfinancial firms finds that the following firm characteristics can influence dividend policy: insider-outsider (IO) conflict (Easterbrook, 1984;Jensen, 1986;Faccio et al, 2001), asset growth (Fama and French, 2001), size (Fama and French, 2001;DeAngelo et al, 2004;Denis and Osobov, 2008), profitability (Fama and French, 2001;DeAngelo et al, 2004;Denis and Osobov, 2008), earned equity (DeAngelo et al, 2006;von Eije and Megginson, 2008;DeAngelo and DeAngelo, 2007), a recent quotation on the stock market (Cornett et al, 2008), and the legal framework of the country of origin (La Porta et al, 2000). Consequently, I include several control variables to allow for the impact of these factors.…”

Dividends and Risk in European Banks

“…Despite the importance of dividend policy for bank risk, this topic has been rather overlooked by the literature. Nohel (1996, 2000) and Cornett et al (2008) focus on the signalling content of dividends. Casey and Dickens (2000) and Casey et al (2002) investigate the determinants of the dividend payout ratio and dividend yield, respectively.…”