with lower bank debt in firms, indicating a substitution effect between bank credit and trade credit when uncertainty rises …

to their shareholders, suggesting that dividends are used to shift risk from bank owners to the taxpayer. These findings … support recent policy proposals that include restrictions on dividends as part of a set of early regulatory responses to bank …

The relation between dividends and bank soundness has recently drawn much attention from both academics and policy … makers. However, the existing literature lacks an investigation of the relation between dividends and bank risk taking. I …