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Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries

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  • Ali, Heba

Abstract

This paper examines how the COVID-19 pandemic affects corporate dividend policy. Utilizing a sample of 8889 firms listed in the G-12 countries, the findings show that although the proportion of dividend cuts and omissions is significantly higher during the pandemic, yet the majority of firms could either maintain or increase dividends. By doing so, firms might aim to purse more stable dividend policies and signal their financial prospects during the crisis, as posited by dividend signaling theory. Logit regression findings reveal that firm profitability, earnings prospects, size and leverage appear to be important determinants of dividend policy decisions during the pandemic.

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  • Ali, Heba, 2022. "Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004694
    DOI: 10.1016/j.frl.2021.102493
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    Cited by:

    1. Zouhair Boumlik & Badia Oulhadj & Olivier Colot, 2023. "The Effect of the COVID-19 Pandemic on Corporate Dividend Policy of Moroccan Listed Firms," JRFM, MDPI, vol. 16(8), pages 1-17, July.
    2. Ntantamis, Christos & Zhou, Jun, 2022. "Corporate payout, cash holdings, and the COVID-19 crisis: Evidence from the G-7 countries," Finance Research Letters, Elsevier, vol. 50(C).
    3. Seo, Sung Won & Lee, Jong Hwa, 2023. "Peer effect on dividends and return comovement," The North American Journal of Economics and Finance, Elsevier, vol. 67(C).
    4. Erik Syawal Alghifari & Ardi Gunardi & Jaja Suteja & Indah Khoerun Nisa & Zalfa Amarananda, 2022. "Investment Decisions of Energy Sector Companies on the Indonesia Stock Exchange: Theory and Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 73-79, November.
    5. Reda Louziri & Khadija Oubal, 2022. "Determinants of Dividend Policy: The Case of the Casablanca Stock Exchange," JRFM, MDPI, vol. 15(12), pages 1-19, November.

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    More about this item

    Keywords

    COVID-19; Dividends policy; Signaling theory; Agency theory; G-12;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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