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, and bank size were positively associated with dividend payout ratio except leverage, which negatively affected dividend … positive and significant effect on dividend payout ratio; whereas, debt ratio exhibited negative effect. In conclusion, the … liquidity, and effective management of leverage to bolster their dividend payout policies. …
Persistent link: https://www.econbiz.de/10014566176
In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the cost of equity and deposit finance for banks. Despite risk neutrality, equity capital earns a higher expected return than direct investment in risky assets. Banks hold positive capital to reduce...
Persistent link: https://www.econbiz.de/10013064301
liability side and equity behaves more like a sticky variable. In this setting, aggregate procyclical high leverage in the …
Persistent link: https://www.econbiz.de/10012849946
Persistent link: https://www.econbiz.de/10014495072
Liquidity requirements can stimulate deposit growth by increasing depositor repayment in bad states, which can also promote lending and branching. We study an unexpected policy change which fostered the liquid assets of Ethiopian banks by 33% in 2011, and present three findings in line with this...
Persistent link: https://www.econbiz.de/10012917274
Interest in central bank digital currencies (CBDCs) has been burgeoning with 134 countries now exploring its implementation. In December 2022, India started its CBDC pilot program to continue its transition towards a digitized payments economy. This paper presents the first empirical analysis...
Persistent link: https://www.econbiz.de/10014544735
Using a large panel of US bank holding companies from 2001 to 2015, this study investigate how depositors respond to the bank's discretionary behaviors. We document evidence of a higher deposit rates for banks that engage more in earnings management, suggesting the evidence of market discipline....
Persistent link: https://www.econbiz.de/10012914000
In the aftermath of a financial crisis, policymakers often must determine how best to trade off future security from a similar crisis and future moral hazard. The more the government pledges to protect the value of the assets of financial institutions in a crisis, the greater the risks that...
Persistent link: https://www.econbiz.de/10013031309
We investigate how funding liquidity affects the bank lending using a large sample of US bank holding companies. We document a consistent evidence of a lower loan growth for banks that rely more on deposits. The quantile regressions which dissect the lending behavior of banks at the right tail...
Persistent link: https://www.econbiz.de/10012219239
Persistent link: https://www.econbiz.de/10013269593