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Relying on a US bank sample, we document the double-edged sword of dividends on the bank's riskiness. Paying dividends …-payers, consistent with the Dividend-Stability Channel. However, among banks that pay dividends, excessive dividends makes them riskier …
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This article examines the propensity to pay dividends in the U.S banking sector during 1973-2014. Although the … paying dividends in the banking sector. However, the decline started from a very high level as compared to that of the non-banking … explain the declining propensity to pay dividends in the banking sector. …
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