Work

Bank Dividend Policy as a Signal of Bank Quality

Year: 1995

Type: article

Abstract: This article examines whether the dividendpolicy of bank holding companies is used as a signal of their quality. The study found evidence to support the dividend signaling argument-that is, that there is a positive relationship between bank dividendsper share and bank quality rating. Aaiiitionally, an inverse relationship between the dividend payout ratio and bank quality was found. Therefore, both aspects of a bank holding company’s dividendpolicy yields information about the quality of a fmancial institution.

Source: Financial Services Review

DOI: 10.1016/1057-0810(95)90013-6

Authors: Robert Boldin, Keith Leggett

Institutions: Indiana University of Pennsylvania, Davis & Elkins College

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W2016873156

FWCI:

Cites: 10

Cited by: 46

Related to: 10