Chasing dividends during the COVID-19 pandemic

Nicolas Eugster, Romain Ducret, Dusan Isakov and Jean-Philippe Weisskopf

No 520, FSES Working Papers from Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland

Abstract: This paper investigates the impact of the COVID-19 pandemic on the trading behavior of investors around ex-dividend dates in Europe. The sudden decrease in the number of companies paying dividends reduced the opportunities to capture dividends. The firms that have maintained dividend payments during the pandemic thus attracted more interest than before. This led to a doubling in the magnitude of stock return patterns usually observed around ex-dividend days. Our evidence indicates that dividend-seeking investors are likely to be the main driver of the price patterns observed around ex-dividend dates.

Keywords: COVID-19; dividend capture; price pressure; ex-dividend date; event study (search for similar items in EconPapers)
JEL-codes: G12 G14 G35 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2020-10-26
New Economics Papers: this item is included in nep-cfn
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Journal Article: Chasing dividends during the COVID‐19 pandemic (2022)
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