We examine the interaction of dividends, agency costs and taxes on SEO valuations using the 2003 dividend tax cut as a … natural experiment. We find the difference in SEO announcement-day returns between dividend- and non-dividend-paying firms … disappears after the tax cut evidencing dividend status dependent revaluations. Incorporation of agency costs reveals the …

We review the recent academic and policy literature on bank loan loss provisioning (LLP) to identify several advances … smoothing, methodological issues in the bank loan loss provisions literature and the dynamic loan loss provisioning experiment …

games, they do not care if their behaviour destroys bank value and the informativeness of loan loss provisioning estimates … reporting fewer provisions or lower loan losses motivate credit risk teams to game the system that work to determine loan loss … provisions estimate of banks. While bank credit risk teams are sometimes mesmerised by the short-term benefits of provisions …

Using data on listed banks in 51 countries, we analyze whether banks' dividend payouts are influenced by the relative … strengths of the agency conflicts faced by their shareholders and creditors. We show that dividend policy depends on the …

Using data on listed bankes in 51 countries, we analyze whether banks' dividend payouts are influenced by the relative … strengths of the agency conflicts faced by their shareholders and creditors. We show that dividend policy depends on the …

Contingent convertible bonds (CoCos) are the latest bank capital instruments advocated by the Basel Committee on … Banking Supervision and many national bank regulators. CoCos are intended to reduce banks' reliance on government bailouts and … bank shareholders have a stronger preference for dividends. CoCo issuance is not related to regulatory capital ratios for …

Many large U.S. bank holding companies (BHCs) continued to pay dividends during the recent financial crisis, even as … dividend payments alone. The paper also examines the role that repurchases played in large BHCs' decisions to reduce or …-crisis repurchases and the size of dividend reductions for these institutions. …

This article analyses the impact of Recommendation ECB/2020/19 (to credit institutions to refrain from making dividend … already approved dividend pay-outs before the recommendation) were able to pay dividends during the first few months of the … pandemic. This quasi-natural experiment allowed us to analyse the impact of dividend restrictions on lending. Banks that …

bank's financing structure. In our model the bank's assets consist of illiquid loans and liquid reserves and are financed … to an exogenous rollover risk. We show that the use of repos inflicts two types of indirect (“shadow”) costs on the bank …'s shareholders: first, it induces the bank to maintain higher liquid reserves in order to alleviate the additional default risk …