Democracy, Pandemic Crisis and Dividend Policy

Marți, 17 decembrie 2024 – ora 16:40 – sala 3M4 (etaj 1, clădirea Moxa)

Victor Dragotă

Bucharest University of Economic Studies; victor.dragota@fin.ase.ro

Abstract:

Using as data 120,690 firm-year observations from 12,069 companies from 59 countries, we tested whether different indicators for democracy, pandemic crisis, and their interaction explain dividend policy. Our results are mixed. Propensity to pay dividends is positively influenced by democracy, but only for the entire sample and for the developing countries; for developed countries, democracy has a negative impact on this indicator. On the other hand, for dividend / assets, the impact of democracy is reversed. This result can be explained by the different informational content of these two indicators. Dividend policy was negatively affected by the COVID-19 pandemic. Finally, we have interacted democracy with epidemic crisis and analyzed its impact on dividend policy.

Zoom:
https://ase.zoom.us/j/88975840175?pwd=Q0ZnbHl0TjhqcEtzVnhMUWRmdWdPQT09

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