Have European banks maintained their payout policy during the crisis? The role of scrip dividends

We analyse the trend among 79 banks from 20 European countries towardsscrip dividends. Whereas banks do not seem to smooth cash dividends, they dosmooth total dividends, which include both cash and scrip dividends. We alsofind that the new legal requirements (resulting from the Basel III Accord ando...

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Detalles Bibliográficos
Autores: Blanco Alcántara, David, Gallud Cano, Jorge, López Iturriaga, Félix Javier, López de Foronda Pérez, Óscar
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2020
País:España
Institución:Universidad de Burgos (UBU)
Repositorio:Repositorio Institucional de la Universidad de Burgos (RIUBU)
OAI Identifier:oai:riubu.ubu.es:10259/8637
Acceso en línea:http://hdl.handle.net/10259/8637
Access Level:acceso abierto
Palabra clave:Capital stringency
Dividends
European banks
Basel accords
Payout
Scrip dividends
Shareholder protection
Economía
Gestión de empresas
Economics
Industrial management
Descripción
Sumario:We analyse the trend among 79 banks from 20 European countries towardsscrip dividends. Whereas banks do not seem to smooth cash dividends, they dosmooth total dividends, which include both cash and scrip dividends. We alsofind that the new legal requirements (resulting from the Basel III Accord andother country-level laws) have different implications on cash and scrip divi-dends. Whereas the need for better and more capital imposed by these ruleshas led banks to cut cash dividends, there is a positive relationship betweenthe legal requirements on capital adequacy and scrip dividends.