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

Heba Ali

Finance Research Letters, 2022, vol. 46, issue PB

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.

Keywords: COVID-19; Dividends policy; Signaling theory; Agency theory; G-12 (search for similar items in EconPapers)
JEL-codes: G1 G34 G35 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004694

DOI: 10.1016/j.frl.2021.102493

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