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Moral hazard, dividends, and risk in banks

Research output: Contribution to journal › Article › peer-review

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Moral hazard, dividends, and risk in banks. / Onali, E.
In: Journal of Business Finance and Accounting, Vol. 41, No. 1-2, 13.01.2014.

Research output: Contribution to journal › Article › peer-review

HarvardHarvard

Onali, E 2014, 'Moral hazard, dividends, and risk in banks', Journal of Business Finance and Accounting, vol. 41, no. 1-2. https://doi.org/10.1111/jbfa.12057

APA

Onali, E. (2014). Moral hazard, dividends, and risk in banks. Journal of Business Finance and Accounting, 41(1-2). https://doi.org/10.1111/jbfa.12057

CBE

Onali E. 2014. Moral hazard, dividends, and risk in banks. Journal of Business Finance and Accounting. 41(1-2). https://doi.org/10.1111/jbfa.12057

MLA

Onali, E. "Moral hazard, dividends, and risk in banks". Journal of Business Finance and Accounting. 2014. 41(1-2). https://doi.org/10.1111/jbfa.12057

VancouverVancouver

Onali E. Moral hazard, dividends, and risk in banks. Journal of Business Finance and Accounting. 2014 Jan 13;41(1-2). doi: 10.1111/jbfa.12057

Author

Onali, E. / Moral hazard, dividends, and risk in banks. In: Journal of Business Finance and Accounting. 2014 ; Vol. 41, No. 1-2.

RIS

TY - JOUR

T1 - Moral hazard, dividends, and risk in banks

AU - Onali, E.

PY - 2014/1/13

Y1 - 2014/1/13

N2 - In non-financial firms, higher risk taking results in lower dividend payout ratios. In banking, public guarantees may result in a positive relationship between dividend payout ratios and risk taking. I investigate the interplay between dividend payout ratios and bank risk-taking allowing for the effect of charter values and capital adequacy regulation. I find a positive relationship between bank risk-taking and dividend payout ratios. Proximity to the required capital ratio and a high charter value reduce the impact of bank risk-taking on the dividend payout ratio. My results are robust to different proxies for the dividend payout ratio and bank risk-taking.

AB - In non-financial firms, higher risk taking results in lower dividend payout ratios. In banking, public guarantees may result in a positive relationship between dividend payout ratios and risk taking. I investigate the interplay between dividend payout ratios and bank risk-taking allowing for the effect of charter values and capital adequacy regulation. I find a positive relationship between bank risk-taking and dividend payout ratios. Proximity to the required capital ratio and a high charter value reduce the impact of bank risk-taking on the dividend payout ratio. My results are robust to different proxies for the dividend payout ratio and bank risk-taking.

U2 - 10.1111/jbfa.12057

DO - 10.1111/jbfa.12057

M3 - Article

VL - 41

JO - Journal of Business Finance and Accounting

JF - Journal of Business Finance and Accounting

SN - 1468-5957

IS - 1-2

ER -