Andreeva, Desislava Č.; Bochmann, Paul; Schneider, Julius - 2023
This paper evaluates the impact of the March 2020 European Central Bank recommendation that banks do not pay dividends … or buy back shares on their market values. It documents a causal negative impact on bank share prices of around 7% during … investor cash flows and indirectly, by increasing the uncertainty about future distributions and thus banks' equity risk premia …