The COVID-19 Pandemic and Corporate Dividend Policy

Publication: Scientific journalJournal articlepeer-review


This paper shows for major equity markets that the proportion of index values attributable to the first five years of dividends dropped substantially in the first quarter of 2020 and that this drop has not been reversed by the end of the year. In the cross-section, this breakdown of dividend smoothing due to COVID-19 was less severe for firms with higher operating cash flows and more positively co-skewed stock returns and more pronounced for those with higher leverage and in the financial sector. Heavy dividend cutters also experienced a substantial increase in exposure to systematic risk.
Original languageEnglish
Pages (from-to)2389 - 2410
JournalJournal of Financial and Quantitative Analysis (JFQA)
Issue number7
Publication statusPublished - 2021

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502004 Banking management
  • 502052 Business administration
  • 502
  • 502009 Corporate finance

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