Dividend Policy of Bank Initial Public Offerings

Posted: 17 May 2006

See all articles by Wolfgang Bessler

Wolfgang Bessler

University of Hamburg

James P. Murtagh

Siena College

Dona D. Siregar

Rensselaer Polytechnic Institute (RPI)

Multiple version iconThere are 2 versions of this paper

Abstract

This paper investigates the short-term valuation effects and the long-run performance of bank initial public offerings in the United States from 1972 to 1997. Overall, the empirical results provide significant evidence that the dividend policy of bank IPOs differ from that of non-banks. The dividend policy of bank IPOs has a significant impact on the long-run performance. Most importantly, banks that later on were acquired outperform the benchmark significantly and banks that continue to operate independently as well as banks that eventually failed both under-perform. Moreover, the beginning of the dividend payment is an important characteristic that separates the out-performers from the under-performers.

Keywords: dividend policy, bank, initial public offerings

JEL Classification: G21, G35

Suggested Citation

Bessler, Wolfgang and Murtagh, James P. and Siregar, Dona D., Dividend Policy of Bank Initial Public Offerings. Data Not Availalbe, Available at SSRN: https://ssrn.com/abstract=901744 or http://dx.doi.org/10.2139/ssrn.400080

Wolfgang Bessler

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

James P. Murtagh (Contact Author)

Siena College ( email )

Loudonville, NY
United States

Dona D. Siregar

Rensselaer Polytechnic Institute (RPI)

Troy, NY 12180
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,006
PlumX Metrics