Corporate dividend payout strategies during the pandemic period: empirical evidence from European countries

Pozhidaeva, Iana (2023) Corporate dividend payout strategies during the pandemic period: empirical evidence from European countries. [Dissertation (University of Nottingham only)]

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This course work is applied company-based research aimed to analyse changes in dividend payout policy during Pandemic on the example of European companies divided into two groups: developing and developed in order to distinguish institution specific factors.

The research is conducted on the example of 6505 firms with headquarters from 44 European countries. The performed analysis confirms the assumption about adverse Covid-19 impact on firms’ financial key performance indices which caused larger dividend omissions in 2020-2021 for both selected groups. The decline in financial ratios is largely explained by signaling and agency theories which remained applicable before and during the Pandemic explaining negative correlation between omission decisions and market-to-book ratio and firm size correspondingly. Another theory which supports interpreting the positive correlation between company’s growth and dividend’s cut off is life-cycle theory.

One of the observations depicted by the usage of summary statistics is about twice lower dividend omissions across the representatives from developing countries. Another finding about the increased impact of firm’s size, market-to-book ratio and growth potential on dividend omission switchers is explored by application of panel regression model as the most powerful tool to introduce a set of dummy variables simultaneously.

The study results are equally applicable not only for executive managers and professionals in finance but also for current and external investors because it highlights the most significant firm’s financial characteristics valid during Pandemic and therefore helps to establish a better control on them to conduct the more informed dividend payout strategies and asset purchases during the times of economic downturn.

Item Type: Dissertation (University of Nottingham only)
Keywords: Covid-19; dividend payout; Europe
Depositing User: Pozhidaeva, Iana
Date Deposited: 25 Jul 2023 07:36
Last Modified: 25 Jul 2023 07:36

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