Bank cash-reserve management and payout policy under peer pressure

  • Autor
  • Diogo Duarte
  • Co-autores
  • Özde Öztekin , Yuri Saporito
  • Resumo
  • We examine the interplay between cash reserve management, dividend
    policies, bankruptcy risk, and peer pressure in the banking sector, utiliz-
    ing a blend of continuous-time economic modeling and empirical analysis of
    Federal Reserve Y-9C report data from 1987-2020. Our findings reveal that
    peer pressure significantly influences banks’ liquidity strategies and dividend
    behaviors, promoting increased cash reserves and moderated dividend pay-
    outs, thereby leading to improved bank risk profiles. This study underscores
    the importance of peer dynamics in shaping financial strategies, offering im-
    portant insights for policymakers and banking executives. It highlights the
    need for regulatory frameworks that recognize the role of peer influence,
    encouraging practices that enhance financial stability and resilience

  • Palavras-chave
  • Bank cash-reserve management, payout policy, peer pressure
  • Modalidade
  • Comunicação oral
  • Área Temática
  • Finanças Corporativas e Bancárias (Corporate Finance and Banking)
Voltar Download
  • Apreçamento de Ativos (Asset Pricing)
  • Finanças Corporativas e Bancárias (Corporate Finance and Banking)
  • Econometria Financeira (Financial Econometrics)
  • Engenharia Financeira (Financial Engineering)
  • Macrofinanças (Macrofinance)