Corporate payout, cash retention, and the supply of credit: Evidence from the 2008-2009 credit crisis

• 成果类型: Article
• 署名作者: Bliss, Barbara A.; Cheng, Yingmei; Denis, David J.
• 署名单位: University of San Diego; State University System of Florida; Florida State University; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.10.013
• 发表日期: 2015
• 页码: 521-540
• 关键词: Cash; Corporate investment; payout policy; CRISIS; financing constraints

摘要

We document significant reductions in corporate payouts-both dividends and (to a larger extent) share repurchases-during the 2008-2009 financial crisis. Payout reductions are more likely in firms with higher leverage, more valuable growth options, and lower cash balances, i.e., those more susceptible to the negative consequences of an external financing shock. Moreover, firms appear to use the proceeds from the reduction in payout to maintain cash levels and to fund investment. These findings are consistent with the view that a shock to the supply of credit (net of demand effects) during the financial crisis increased the marginal benefit of cash retention, leading some firms to turn to payout reductions as a substitute form of financing. (C) 2014 Elsevier B.V. All rights reserved.