Firm Resiliency and Dividend Policy during the COVID-19 Pandemic

The study investigates the impact of COVID-19 on dividend policies among resilient and non-resilient Indian firms listed in the BSE 500 index from 2014–2015 to 2022–2023. As highlighted by Krieger et al. (2021), the COVID-19 pandemic compelled companies to reassess their dividend policies in response to economic disruptions. To analyse the pandemic’s effect on dividend strategies, the research employs a system generalised method of moments (system GMM) model. The findings reveal that the pandemic significantly influenced firms’ dividend policies, with non-resilient firms reducing their dividends compared to resilient firms. Additionally, firms with high return on assets (ROA), total assets (TA), and Tobin’s Q (TBQ) maintained strong dividend payments during the pandemic, while highly leveraged firms struggled to sustain dividends. These results have practical implications for corporate and investment sector decision-makers, underscoring the importance of strategic and adaptive decision-making to ensure resilience in times of economic crisis.