Bank Dividend Policy and the European Debt Crisis: Is Sovereign Credit Risk of Relevance?
Research output: Contributions to collected editions/works › Chapter › peer-review
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Handbook of Global Financial Markets: Transformations, Dependence, and Risk Spillovers. ed. / Sabri Boubaker; Duc Khuong Nguyen. World Scientific Publishing Co., 2019. p. 401-410.
Research output: Contributions to collected editions/works › Chapter › peer-review
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RIS
TY - CHAP
T1 - Bank Dividend Policy and the European Debt Crisis
T2 - Is Sovereign Credit Risk of Relevance?
AU - Basse, Tobias
AU - Bürkle, Thomas
AU - Kunze, Frederik
AU - Wegener, Christoph
PY - 2019/7
Y1 - 2019/7
N2 - This chapter examines the dividend policy of European banks. The empirical evidence presented here suggests that financial institutions in the Eurozone react to stress in international financial markets by reducing or omitting dividend payouts to strengthen their capital position. Additionally, a negative reaction of dividend payouts of European banks to an increase of the yield differential between German and Spanish bonds seems to exist. However, this response of dividends to sovereign credit risk in the Eurozone is not statistically significant. The financial crisis starting in 2007 does not seem to materially change the relationships among the variables examined here.
AB - This chapter examines the dividend policy of European banks. The empirical evidence presented here suggests that financial institutions in the Eurozone react to stress in international financial markets by reducing or omitting dividend payouts to strengthen their capital position. Additionally, a negative reaction of dividend payouts of European banks to an increase of the yield differential between German and Spanish bonds seems to exist. However, this response of dividends to sovereign credit risk in the Eurozone is not statistically significant. The financial crisis starting in 2007 does not seem to materially change the relationships among the variables examined here.
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85129427018&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/b4558139-518e-3b91-9904-221a0a3e5369/
U2 - 10.1142/9789813236653_0016
DO - 10.1142/9789813236653_0016
M3 - Chapter
AN - SCOPUS:85129427018
SN - 978-981-3236-64-6
SN - 978-981-3236-66-0
SP - 401
EP - 410
BT - Handbook of Global Financial Markets
A2 - Boubaker, Sabri
A2 - Nguyen, Duc Khuong
PB - World Scientific Publishing Co.
ER -