The paper wants to study the effect of COVID-19 on dividend policies among resilient, non-resilient Indian firms included in the BSE 500 index between the period 2014–15 to 2022–2023. As sustained by Krieger et al (2021) the COVID-19 pandemic compelled companies to revise their dividend policies in response to economic challenges To test the pandemic’s impact on dividend strategies, a System Generalized Method of Moments (System GMM) model is used The results show that the pandemic had a sizable influence on firms’ dividend policy Non-resilient firms during the pandemic drastically decreased their dividend as compared to resilient firms Additionally, during the pandemic, firms with high Return on Assets (ROA), Total Assets (TA), and Tobin’s Q (TBQ) demonstrated strong dividend payments, while highly leveraged companies had difficulty maintaining dividends This research has practical implications that can direct corporate and investment sector decision-makers The study emphasises that strategic and adaptive decision-making is
Firm resiliency, COVID-19 and Dividend: empirical evidence from India
Matteo Rossi
In corso di stampa
Abstract
The paper wants to study the effect of COVID-19 on dividend policies among resilient, non-resilient Indian firms included in the BSE 500 index between the period 2014–15 to 2022–2023. As sustained by Krieger et al (2021) the COVID-19 pandemic compelled companies to revise their dividend policies in response to economic challenges To test the pandemic’s impact on dividend strategies, a System Generalized Method of Moments (System GMM) model is used The results show that the pandemic had a sizable influence on firms’ dividend policy Non-resilient firms during the pandemic drastically decreased their dividend as compared to resilient firms Additionally, during the pandemic, firms with high Return on Assets (ROA), Total Assets (TA), and Tobin’s Q (TBQ) demonstrated strong dividend payments, while highly leveraged companies had difficulty maintaining dividends This research has practical implications that can direct corporate and investment sector decision-makers The study emphasises that strategic and adaptive decision-making isI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
