IDEAS home Printed from https://ideas.repec.org/a/now/jnlrcf/114.00000044.html
   My bibliography  Save this article

Payouts and Future Bank Profitability: The Role of Capital Distribution Plans

Author

Listed:
  • Dimitris K. Chronopoulos
  • Edie Erman Che Johari
  • Anna L. Sobiech
  • John O. S. Wilson

Abstract

We investigate the impact of a change in the regulatory oversight of bank capital distributions on the information content of payouts (dividends, share repurchases) regarding the future level and volatility of profitability of US Bank Holding Companies (BHCs). Using a differential regulatory treatment, which requires large BHCs to obtain prior regulatory approval before enacting payouts to shareholders, we find that an increase in regulatory oversight of bank capital distributions leads to an increase in the information content of dividends (but not share repurchases) with respect to the level (but not the volatility) of future bank profitability.

Suggested Citation

  • Dimitris K. Chronopoulos & Edie Erman Che Johari & Anna L. Sobiech & John O. S. Wilson, 2023. "Payouts and Future Bank Profitability: The Role of Capital Distribution Plans," Review of Corporate Finance, now publishers, vol. 3(3), pages 361-387, July.
    • Handle: RePEc:now:jnlrcf:114.00000044
    DOI: 10.1561/114.00000044
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/114.00000044
    Download Restriction: no
    File URL: https://libkey.io/10.1561/114.00000044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Banks; bank regulation; capital; dividends; payouts; profitability; repurchases;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:jnlrcf:114.00000044. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.