Title: Dividend policy and COVID-19 pandemic: an empirical study of Indian firms

Authors: Prasenjit Roy; Santi Gopal Maji

Addresses: Department of Commerce, School of Management Sciences, Tezpur University, Tezpur, 784028, Assam, India ' Department of Commerce, School of Management Sciences, Tezpur University, Tezpur, 784028, Assam, India

Abstract: This study explores how the COVID-19 pandemic has affected the dividend pay-outs of firms listed in the BSE 500 index from 2014-2015 to 2021-2022, using a panel regression analysis. Empirical findings indicate that the pandemic influenced firms' dividend policies. Firms with higher return on assets (ROA), total assets (TA), and Tobin's Q (TBQ) exhibited higher dividend during the pandemic, whereas high-leveraged firms faced challenges in sustaining dividends. The analysis also considers variables such as firm age, size, business affiliation and sector. The study underscores that economic shocks, such as the COVID-19, necessitate adaptive and strategic decision-making. This is particularly important for firms that rely on dividend payouts as a means of returning value to shareholders. For investors, the insights will act as a valuable input in making sound investment choices, with a careful assessment of a firm's financial health and its ability to withstand unexpected macroeconomic challenges.

Keywords: COVID-19 pandemic; dividend pay-out policies; BSE 500 index; panel data regression model; firm-level categories; firm age; firm size; business affiliation; financial indicators; economic downturns.

DOI: 10.1504/GBER.2025.147169

Global Business and Economics Review, 2025 Vol.33 No.1, pp.1 - 23

Received: 15 Sep 2023
Accepted: 14 Dec 2023
Published online: 11 Jul 2025 *

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