Stakeholder orientation and bank payout policy : evidence from US constituency statutes
Date
08/07/2022Metadata
Show full item recordAbstract
We investigate the impact of stakeholder orientation on bank payout policy. As a quasi-experimental setting, we exploit the staggered enactment of constituency statutes across US states, which broaden the scope of managerial duties to an extended group of stakeholders. The results of a difference-in-differences analysis suggest that bank holding companies (BHCs) incorporated in states enacting constituency statutes experience significant declines in total payouts, which is driven by a decline in share repurchases. This observed decline in share repurchases is stronger for banks with sizeable implicit claims, lower transparency and substantial agency conflicts. These findings remain intact following a myriad of robustness checks and alternative estimation techniques.
Citation
Chronopoulos , D , Yilmaz , M H & Wilson , J O S 2022 , ' Stakeholder orientation and bank payout policy : evidence from US constituency statutes ' , British Journal of Management , vol. Early View . https://doi.org/10.1111/1467-8551.12640
Publication
British Journal of Management
Status
Peer reviewed
ISSN
1045-3172Type
Journal article
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