Lizardo, Benjamin Arturo

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The impact of dividend policy on banks' value in the US stock market
(2020-12-07) Lizardo, Benjamin Arturo; Ruiz-Vargas, Yolanda; College of Business Administration; Seijo-Vidal, Roberto L.; Valentín-Marí, Jeffrey; Department of Business Administration; Méndez-Piñero, Mayra I.
This research examines the impact of dividend policy on 35 of the banks listed on the NYSE. This study developed two empirical models: the first (Model1) was based on the theory of the relevance of dividends, and the second (Model2) on the irrelevance of dividends. Quarterly data were used for the period from Q2.2012 to Q1.2020. The models were estimated using the techniques of least squares, fixed effect, and random effect. In both cases, the model based on a fixed effect proved to be the best to explain the value of the company (MSP). A positive association was found between dividends per share (DPS) and company value (MSP), thus validating the theory of the relevance of dividends. In addition, the REPS and Revenues variables showed a significant and positive effect on MSP, while DER and ESR, a negative impact on MSP.