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Insider ownership and dividend signals: Additional evidence from the banking industry

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Abstract

This study investigates the relationship between the concentration of insider ownership and the share-price response to dividend-policy changes implemented by bank holding companies (BHCs). Using a cross-industry sample, previous research (Born 1988) found that there are differences in the magnitude of the share-price response to dividend initiations which may be explained by the concentration of insider ownership of the sampled firms. We hypothesize that the concentration of insider ownership does not play a role in differences in share price for BHCs due to the presence of regulatory monitors. The results of this study support our hypothesis.

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Authors and Affiliations

  1. Miami University, 45056, Oxford, OH

    Greg Filbeck

  2. Bradley University, 61625, Peoria, IL

    Patricia A. Chadwell

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  1. Greg Filbeck
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  2. Patricia A. Chadwell
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Filbeck, G., Chadwell, P.A. Insider ownership and dividend signals: Additional evidence from the banking industry. J Econ Finan 17, 109–117 (1993). https://doi.org/10.1007/BF02920642

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