TY  - JOUR
AB  - This paper analyzes the relationship between dividend policy and the rate of return on bank holding company (BHC) stocks. We hypothesize that the representative investor in BHC shares has a preference for dividend income over prospective capital gains return. Regulatory policy is hypothesized as playing a role in the determination of the substitutability between dividends and capital gains. To test our hypothesis, two different specifications of the SML were established for the years 1971‐80. Our cross‐sectional sample included forty‐four large BHCs. In general, the statistical evidence provides support for the supposition that investors in BHC stock do not consider expected dividend return and capital gain return as perfect substitutes.
VL  - 3
IS  - 1
SN  - 1935-5181
DO  - 10.1108/19355181198800005
UR  - https://doi.org/10.1108/19355181198800005
AU  - Karna Adi S.
AU  - Graddy Duane B.
PY  - 1988
Y1  - 1988/01/01
TI  - Bank Holding Company Dividend Policies and Share Prices
T2  - American Journal of Business
PB  - MCB UP Ltd
SP  - 32
EP  - 36
Y2  - 2024/04/24
ER  -