COVID-19 AND DIVIDENDS: EVIDENCE FROM POLAND

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dc.contributor.authorGemra, Kamil
dc.contributor.authorKwestarz, Piotr
dc.contributor.authorRogowski, Waldemar
dc.contributor.authorLipski, Mariusz
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2022-06-07T07:48:07Z
dc.date.available2022-06-07T07:48:07Z
dc.description.abstractThis paper aims to examine the impact of an unexpected change in the level of dividend caused by the coronavirus (COVID-19) pandemic on share prices on the Polish stock exchange. Our article analyses the period from 1 February 2020 to 5 June 2020, which was when companies listed on the primary market of the Warsaw Stock Exchange (WSE) published information about Boards of Directors’ dividend recommendations for 2019. The original group of companies included 140 firms. 56 companies (40%) fulfilled all the study criteria, and these were subsequently divided into 2 groups. The groups were defined by the recommendations on profit distribution. The first group consisting of 38 companies (68% of the surveyed) consisted of firms which unexpectedly announced plans to retain all profits in the company or a dividend payment but with a lower value than in the previous year (cancellation or reduction of the dividend amount). The second group of 18 companies (32% of the surveyed) comprised those which unexpectedly announced willingness to pay a dividend per share at a higher level (increase in dividend amount). The research confirmed that the announcement of a change in the level of the dividend or the cancellation of the payment of profit is essential price-creating information on the Polish securities market and has a significant impact on the share prices. In a situation of uncertainty caused by external factors, such as the coronavirus pandemic, the sensitivity of individual companies to lockdown and uncertainty as to the return to normality have a significant negative impact on the market. They cause a fall in the share prices higher than expected, especially when they are accompanied by a shortage of information from the companies and a recommendation to suspend or reduce dividend payment.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2022-2-006
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/164988
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
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dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectdividenden
dc.subjectstock pricesen
dc.subjectCOVID-19en
dc.subject.classificationG10
dc.titleCOVID-19 AND DIVIDENDS: EVIDENCE FROM POLANDen
dc.typeArticleen
local.accessopen
local.citation.epage101
local.citation.spage93
local.facultyFaculty of Economics
local.filenameEM_2_2022_6
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue2
local.relation.volume25
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