Open AccessSpecial state aid measures during COVID-19 and corporate dividend policy: Early evidence from Polish public companies
Author(s) -
Marta Kluzek,
Katarzyna Schmidt-Jessa
Publication year - 2022
Publication title -
economics and business review/the poznań university of economics review
Language(s) - English
Resource type - Journals
eISSN - 2392-1641
pISSN - 1643-5877
DOI - 10.18559/ebr.2022.1.5
Subject(s) - dividend , business , covid-19 , dividend policy , payment , state (computer science) , debt , cash , order (exchange) , monetary economics , economics , accounting , finance , actuarial science , medicine , disease , pathology , algorithm , computer science , infectious disease (medical specialty)
The main aim of this paper is to verify whether companies that received special state aid as part of anti-crisis help to mitigate the negative effects of the coronavirus pandemic decided to pay dividends in 2020. The probability of paying dividend was lower for companies that were granted state aid, the variable was statistically significant and the impact was relevant. Among Polish listed companies those ones that received state aid and paid dividends were of average size and age but had the highest level of cash ratio and the lowest level of debt. If a similar crisis occurs in the future the main task for policymakers will be to provide more directed and unambiguous aid for companies in order to avoid unproductive spending as well as to provide general rules that will restrict dividend payment for beneficiaries of any state-aid.