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The purpose of this dissertation thesis is to investigate how changes in the institutional setting have affected the payout policy of German firms. This dissertation thesis further contributes to the literature on event study methodology by analyzing the measurment of abnormal credit default...
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and dividends---is incomplete and misleading: it ignores large offsetting equity issuances that move capital from …
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-payers, consistent with the Dividend-Stability Channel. However, among banks that pay dividends, excessive dividends makes them riskier …Relying on a US bank sample, we document the double-edged sword of dividends on the bank's riskiness. Paying dividends …, consistent with the Dividend-Fragility Channel. Our results remain unchanged due to a battery of robustness testings. …
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