Corporate Dividend Policies during the COVID-19 Pandemic

Journal article

Ali, N., Rehman, M.Z.U., Ashraf, B. and Shear, F. (2022). Corporate Dividend Policies during the COVID-19 Pandemic. Economies. 10 (11), p. 263. https://doi.org/10.3390/economies10110263
AuthorsAli, N., Rehman, M.Z.U., Ashraf, B. and Shear, F.
Abstract

In this paper, we examine the changes in corporate dividend policies during the COVID-19 shock. For empirical analysis, we employ annual data of 360 companies from the Pakistan Stock Exchange over the period 2015–2020. Using descriptive analysis and Logit regression models, we find that firms were more likely to either omit or reduce dividend payments during the pandemic year of 2020 as compared to the trends in pre-COVID-19 years of 2015–2019. Further, firms with higher profitability, asset turnover and size were less likely to opt for dividend omissions. On the contrary, dividend omissions were more likely among firms with higher debt ratios. The findings of this study helps to understand firm dividend policies during crisis periods.

KeywordsCOVID-19; Dividend policy; Pakistan ; Logit regression
Year2022
JournalEconomies
Journal citation10 (11), p. 263
PublisherMDPI
ISSN2227-7099
Digital Object Identifier (DOI)https://doi.org/10.3390/economies10110263
Web address (URL)https://doi.org/10.3390/economies10110263
Publication dates
Print24 Oct 2022
Publication process dates
Accepted28 Sep 2022
Deposited02 Nov 2022
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Open
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