The Effect of the COVID-19 Pandemic on Corporate Dividend Policy of Moroccan Listed Firms

Zouhair Boumlik (), Badia Oulhadj and Olivier Colot
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Zouhair Boumlik: Research Laboratory in Strategy and Management of Organizations, National School of Business and Management, Hassan First University in Settat, Settat 26000, Morocco
Badia Oulhadj: Research Laboratory in Strategy and Management of Organizations, National School of Business and Management, Hassan First University in Settat, Settat 26000, Morocco
Olivier Colot: Department of Accounting, Auditing, Risk Management and Entrepreneurship, Warocqué School of Business and Economics, University of Mons, 7000 Mons, Belgium

JRFM, 2023, vol. 16, issue 8, 1-17

Abstract: The recent literature provides conflicting findings and remains inconclusive regarding the impact of the COVID-19 crisis on firms’ dividend policies. In this paper, we examine the dividend policy of Moroccan firms listed in the Casablanca Stock Exchange during the COVID-19 shock. Using panel data from 2015 to 2021 of non-financial listed firms, we observe that the proportion of dividend cuts during the last seven years (2015–2021) achieved its highest level on the onset of the crisis. Furthermore, results of the ordinary least square (OLS) regressions demonstrate that the COVID-19 shock has negatively affected the dividend payout of Moroccan listed firms. This study implies that, in times of economic crisis, Moroccan firms exhibit risk-averse behavior by prioritizing the retention of earnings over distributing dividends, scarifying, therefore, the transmission of positive signals to investors and external stakeholders. Furthermore, our results reveal that profitability, growth opportunities, leverage, and size are relevant determinants of corporate dividend policy.

Keywords: dividend policy; signaling theory; COVID-19 crisis; Casablanca Stock Exchange (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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