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Harjoto, M. A., Rossi, F., & Paglia, J. K. (2020). COVID-19: Stock Market Reactions to the Shock and the Stimulus. Applied Economics Letters, 28, 795-801.
https://doi.org/10.2139/ssrn.3622899

has been cited by the following article:

• TITLE: Government Grants and the Impact of Dividend Announcements on Firms’ Stock Price

  AUTHORS: Riste Ichev

  KEYWORDS: Government Grants, COVID-19, Dividend Announcement, Investor Sentiment, Stock Markets

  JOURNAL NAME: Theoretical Economics Letters, Vol.14 No.3, June 21, 2024

  ABSTRACT: This study empirically examines the impact of media-reported dividend announcements 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’ reaction to firms announcing discontinuation of dividend payments while receiving 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.