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Chasing dividends during the COVID‐19 pandemic

Author

Listed:
  • Nicolas Eugster
  • Romain Ducret
  • Dušan Isakov
  • Jean‐Philippe Weisskopf

Abstract

This paper investigates the impact of the coronavirus disease 2019 pandemic on investors' trading behaviors around ex‐dividend dates in Europe. The sudden decrease in the number of companies paying dividends reduced the opportunities to capture dividends. Thus, the firms that maintained dividend payments during the pandemic attracted more interest than before. This led to a doubling in the magnitude of stock return patterns usually observed around ex‐dividend days. Our evidence indicates that dividend‐seeking investors are likely to be the main driver of the price patterns observed around ex‐dividend dates.

Suggested Citation

  • Nicolas Eugster & Romain Ducret & Dušan Isakov & Jean‐Philippe Weisskopf, 2022. "Chasing dividends during the COVID‐19 pandemic," International Review of Finance, International Review of Finance Ltd., vol. 22(2), pages 335-345, June.
    • Handle: RePEc:bla:irvfin:v:22:y:2022:i:2:p:335-345
    DOI: 10.1111/irfi.12360
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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