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  • Government grants and the impact of dividend announcements on firms’ stock price
    Ichev, Riste
    This study empirically examines the impact of media-reported dividend an- nouncements on the stock returns of US public firms receiving a COVID-19- related one-time government grant. While COVID-19 ... continued devastating the economy, public firm borrowers that decided to pay out dividends while using government support, exhibited a negative Cumulative Abnormal Return (CAR) of −5.3% around the announcement day. In contrast, investors’ reac- tion to firms announcing discontinuation of dividend payments while re- ceiving COVID-19 grants, results in a much milder CAR of ≈ −1.2%. Firm size, leverage, cash/assets, ESG score, and the media coverage proxy influence significantly the returns during the period
    Source: Theoretical economics letters. - ISSN 2162-2078 (Vol. 14, 2024, str. 951-961)
    Type of material - article, component part ; adult, serious
    Publish date - 2024
    Language - english
    COBISS.SI-ID - 199652867
    DOI