Dividend Payouts and Rollover Crises

• 成果类型: Article
• 署名作者: Juelsrud, Ragnar E.; Nenov, Plamen T.
• 署名单位: Norges Bank; BI Norwegian Business School
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz130
• 发表日期: 2020
• 页码: 4139
• 关键词: Global games; information acquisition; endogenous information; COORDINATION; POLICY; equilibrium; REPURCHASES; CHOICE

摘要

We study dividend payouts when banks face coordination-based rollover crises. Banks in the model can use dividends to both risk shift and signal their available liquidity to shortterm lenders, thus, influencing the lenders' actions. In the unique equilibrium both channels induce banks to pay higher dividends than in the absence of a rollover crisis. In our model banks exert an informational externality on other banks via the inferences and actions of lenders. Optimal dividend regulation that corrects this externality and promote financial stability includes a binding cap on dividends. We also discuss testable implications of our theory.