Do bank ties influence stock repurchases in a bank-based financial system during financial distress? A pre-registered report

Hideaki Sakawa, Naoki Watanabel and Konari Uchida

Pacific-Basin Finance Journal, 2024, vol. 85, issue C

Abstract: This pre-registered study seeks to investigate the effects of bank ties on corporate repurchase decisions and stock price reactions to buyback announcements. We make causal inferences to provide more insights into bank ties for stock repurchase decisions during extreme financial distress. We focus on the COVID-19 pandemic as an exogenous shock and identify whether the COVID-19 shock affected the bank-ties effect of the motives of stock repurchase decisions in a bank-based financial system. Our study sheds light on the motives behind stock repurchase decisions and the role of banks in corporate cash distribution to shareholders. Furthermore, our study contributes to understanding how extreme financial distress, such as COVID-19, affects the motive for stock repurchase in a bank-based financial system.

Keywords: Bank-based financial system; Bank ties; COVID-19; Japan; Stock repurchase (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x24001318

DOI: 10.1016/j.pacfin.2024.102380

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