Template-Type: ReDIF-Paper 1.0
Author-Name: Emmanuel Caiazzo
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Caiazzo
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Tommaso Oliviero  
Author-X-Name-First: Tommaso 
Author-X-Name-Last: Oliviero  
Author-Name: Hyun Song Shin
Author-X-Name-First: Hyun Song
Author-X-Name-Last: Shin
Title: Corporate payout policy: are financial firms different?
Abstract: It is well documented that financial firms display a larger corporate pay-out propensity than non-financial firms. By using an international sample of listed firms from advanced economies, we show that this difference vanishes after accounting for heterogeneity among corporations in their financial leverage, stock market liquidity and share-ownership by institutional investors. A theoretical model that builds on Acharya et al. (2017) provides a framework to analyze the effect of corporate structure on payout decisions and rationalizes the economic mechanisms behind our empirical results.
Creation-Date: 2024-02
File-URL: https://www.bis.org/publ/work1168.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1168.htm
File-Format: text/html
Number: 1168
Keywords: corporate payout policy, dividends, financial firms, risk-shifting
Classification-JEL: G21, G35
Handle: RePEc:bis:biswps:1168