On Friday December, 4th., 2015
Fakultät für Wirtschaftswissenschaften, Universität Wien, AT
will present his research entitled:
(Please do not quote, cite, distribute or copy without the consent of the authors)
We provide an extensive analysis of the payout policy of U.S. banks around the financial crisis to understand the motives behind their payout decisions. Using established models that relate payouts to banks fundamentals, we observe that total payout increases above its expected level in 2007, but decreases below it in 2008. Banks that reduce dividends by more in 2008 fare worse in 2009. Insiders of banks that increase dividends do not sell more stock, and insiders of banks that keep dividends constant sell significantly less than before the crisis. Overall, our evidence is consistent with the hypothesis that bank managers underestimated the severity of the crisis until the Lehman bankruptcy. We find no compelling evidence that banks systematically used their payout policy to shift wealth to shareholders in anticipation of future problems.
The research seminar will be held in C/Pinar, 18 Room P-211 at 2:00 pm
If you would like to schedule a personal meeting with the speaker, please contact Prof. Fabio Feriozzi (Fabio.Feriozzi@ie.edu)