The COVID-19 Pandemic and Corporate Dividend Policy
| العنوان: | The COVID-19 Pandemic and Corporate Dividend Policy |
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| المؤلفون: | Georg Cejnek, Josef Zechner, Otto Randl |
| المصدر: | Journal of Financial and Quantitative Analysis. 56:2389-2410 |
| بيانات النشر: | Cambridge University Press (CUP), 2021. |
| سنة النشر: | 2021 |
| مصطلحات موضوعية: | 502009 Corporate finance, History, Economics and Econometrics, Index (economics), Leverage (finance), Polymers and Plastics, Risk premium, media_common.quotation_subject, 502004 Banking management, Monetary economics, Dividend policy, Industrial and Manufacturing Engineering, 502009 Finanzwirtschaft, Accounting, Systematic risk, 502004 Bankbetriebslehre, Economics, Business and International Management, 502052 Business administration, Stock (geology), media_common, Earnings, Equity (finance), Market liquidity, Operating cash flow, 502052 Betriebswirtschaftslehre, Cost of capital, Cash, Dividend, Futures contract, Finance |
| الوصف: | Important dimensions of dividend behavior are not well understood. How do dividends behave in extreme states of the world? Why is the risk premium on dividend claims so high? Would dividend bans in crisis states have plausible effects on firms' cost of capital? In this paper we use evidence from the ongoing Corona pandemic to shed light on these questions. We find that, contrary to the folklore that near-future dividends are smoother than earnings or share prices, the opposite is true in disaster states. It appears that firms do not fulfill their role as liquidity intermediaries for their shareholders in precisely those states, in which predictable cash payments would be valued most highly. This is consistent with the apparent puzzle that near-maturity dividend futures have provided investors with "anomalously" high returns in the past years. In light of the recent Corona disaster, these risk premia are consistent with compensation for negative co-skewness and exposure to disaster risk. Our findings imply that policy setters who consider banning dividends in a crisis should take into account the potential effect this is likely to have on firms' future cost of capital. |
| تدمد: | 1756-6916 0022-1090 |
| URL الوصول: | https://explore.openaire.eu/search/publication?articleId=doi_dedup___::3ec4ae001e7e62983a2e3c3e284ee36d https://doi.org/10.1017/s0022109021000533 |
| حقوق: | OPEN |
| رقم الأكسشن: | edsair.doi.dedup.....3ec4ae001e7e62983a2e3c3e284ee36d |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 17566916 00221090 |
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