earticle

영어

This study investigates the effects of the COVID-19 shock on firms’ dividend payout policies. An analysis of Korean data reveals that the COVID-19 shock caused firms to lower their dividend payouts. We use propensity score matching to establish that the results are not driven by endogeneity. Finally, we observe the impact of external monitoring and show that the effects of the COVID-19 shock manifest only in firms audited by the Big-4 audit firms in Korea and in those owned largely by foreign investors, indicating that such institutions restrain firms from distributing dividends.