Publication detail

Do EU-Wide Stress Tests Affect Insurers’ Dividend Policies?

Author(s): doc. PhDr. Ing. Ing. Petr Jakubík Ph.D. Ph.D.,
Ing. Saida Teleu Ph.D.,
Type: IES Working Papers
Year: 2022
Number: 17
Published in: IES Working Papers 17/2022
Publishing place: Prague
Keywords: dividend distributions; dividends and share buybacks; European insurers; EU-wide insurance stress test, COVID-19
JEL codes:
Suggested Citation: Jakubik P. and Teleu S. (2022): "Do EU-Wide Stress Tests Affect Insurers’ Dividend Policies?" IES Working Papers 17/2022. IES FSV. Charles University.
Abstract: The article employs panel data to investigate whether stress test results and other characteristics associated with European insurers vulnerabilities affect dividend distributions and share buybacks. We focus on the EU wide insurance stress test conducted in 2018 and 2021 as in this way we can also capture a behaviour of insurers during the COVID-19 crisis. Our empirical results suggest that two stress tests considered had no significant impact on changes in dividend distributions. However, more resilient insurers measured by assets-over-liabilities ratio seem to have higher dividend payout ratios including share buybacks. On the contrary, higher generated profit tend to be reflected in lower payout ratio.
Downloadable: wp_2022_17_jakubik, teleu


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