Dividend announcement effect analysis before and during the COVID-19 pandemic in the Indonesia Stock Exchange

Robiyanto, Robiyanto; Yunitaria, Fanny

doi:10.1007/s43546-021-00198-8

Cited by 12 publications

(24 citation statements)

References 20 publications

(37 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the context of the pandemic crisis, showed that profitability significantly affects dividend policy positively. Therefore, this mediating effect can also create the assumption that the crisis affects dividend policy, mediated by positive profitability (Ashraf, 2021;Cejnek et al, 2021;Cepoi, 2020;Hartono & Raya, 2022;Robiyanto & Yunitaria, 2022;Utomo & Hanggraeni, 2021). Based on the rational basis and the support of the previous studies, the third hypothesis formulated is that GDP has an effect on dividend policy mediated by profitability.…”

Section: Literature Reviewmentioning

confidence: 99%

COVID-19, Profitabilitas, dan Kebijakan Dividen: Uji Robustness untuk Model Mediasi Menggunakan SEM Berbasis Kovarian

Hartono

Tinungki

Susanto

2023

IDEB

View full text Add to dashboard Cite

Menguji efek mediasi dari profitabilitas pada efek krisis pandemi COVID-19 terhadap kebijakan dividen di Indonesia merupakan tujuan penelitian ini. Perusahaan sektor real estat, properti, dan konstruksi bangunan dipilih sebagai sampel dengan pendekatan purposive sampling technique, dengan kriteria-kriteria yang ditetapkan, serta periode penelitian ini adalah tahun 2014 – 2020. Alat analisis statistik yang digunakan adalah model persamaan struktural berbasis kovarian untuk pengujian kausalitas dengan melakukan uji robustness pada dua pendekatan model empiris. Hasil yang dihasilkan adalah krisis pandemi COVID-19 berpengaruh positif terhadap profitabilitas secara positif, dan profitabitas berpengaruh positif terhadap kebijakan dividen. Pada uji mediasi, terbukti krisis pandemi COVID-19 berpengaruh positif terhadap kebijakan dividen yang secara signifikan yang dimediasi oleh profitabilitas. Hasil penelitian ini menunjukkan bahwa perusahaan sektor real estat, properti, dan konstruksi bangunan di Indonesia cenderung menekan tingkat dividen selama krisis pandemi. Bagi manajemen perusahaan agar dapat memperhatikan efek mediasi profitabilitas perusahaan dalam menetapkan kebijakan dividen secara optimal di masa krisis. Bagi para investor, dapat memperhatikan efek mediasi profitabilitas perusahaan untuk mendapatkan return yang optimal berupa dividen, secar spesifik untuk perusahaan sektor riil estat, properti dan konstruksi bangunan selama pandemi.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

COVID-19, Profitabilitas, dan Kebijakan Dividen: Uji Robustness untuk Model Mediasi Menggunakan SEM Berbasis Kovarian

Hartono

Tinungki

Susanto

2023

IDEB

View full text Add to dashboard Cite

show abstract

“…The study by Robiyanto and Yunitaria, (2022) on dividend announcement effect before and during the COVID-19 pandemic in Indonesia discovered that in 2019, the Indonesia capital market presented a weak response toward the event, indicated by the inexistence of abnormal return. Moreover, in 2020, the dividend announcement effect caused negative insignificant abnormal returns and the number of companies with low volatility increased, implying that the stock market was more pessimistic during the pandemic period.…”

Section: Studies On Emerging and Frontier Marketsmentioning

confidence: 99%

How Does Stock Market React to Dividend Announcement? An Empirical Evidence from Tanzania Listed Firms

Lotto¹

2023

jeb

View full text Add to dashboard Cite

This paper aimed at examining the reaction of corporate stock return on dividend announcement for listed firms in Dar Es Salaam Stock Exchange (DSE) between 2010 and 2019. The study employed the event study methodology to assess the impact of the information on the stock return. The results clearly show that the effect of dividend announcement on the stock return is positive around the announcement date, and that the stock price moves up as long as the announcement date approaches and then starts decreasing from this date onwards. This immediately confirms the consequence of dividend announcement, that the effect of dividend announcements is consistent with the informational content of the dividend hypothesis as well as with dividend signaling models. Clearly, the results of this study support the dividend relevance theory in which the dividend policy affects the firm value. Particularly, the findings would enhance current understandings of the dividend policy impact on the firm value, and this may allow financial managers to be able to determine an optimal dividend policy which improves the performance of the firms. Furthermore, the study encourages investors to benefit from dividend announcement as a guide towards buying and selling stocks to avoid unnecessary trading losses.

show abstract

“…This indicated buying actions on shares that distribute dividends, which responded quickly and positively. Robiyanto & Yunitaria (2022) reported no significant abnormal return on the distribution by companies indexed LQ-45 in Indonesia. This indicates that the stock market was pessimistic during the pandemic period.…”

Section: Introductionmentioning

confidence: 96%

“…The COVID-19 pandemic has a global impact. At the end of January 2020, the spread of this virus was declared a Public Health Emergency of International Concern (PHEIC) by the World Health Organization (Robiyanto & Yunitaria, 2022). The consequence significantly impacted the global economy as a systemic crisis.…”

Section: Introductionmentioning

confidence: 99%

COVID-19 Pandemic, Dividend Policy, and Stock Market Reaction: Evidence from the Manufacturing Companies in Indonesia

Hartono,

Raya

2022

J. Keuang. dan Perbank.

View full text Add to dashboard Cite

This study aimed to examine the impact of the COVID-19 crisis on the dividend policy of Indonesia’s manufacturing companies and the stock market reaction to this corporate action in 2020. The purposive sampling technique was used to select 87 manufacturing companies to examine the impact of the crisis on dividend policy from 2014 to 2020, while the market reaction was tested on 42 companies. Data were analyzed using the dynamic panel data regression with the SYS-GMM estimation method, as well as the one sample T-test and the Wilcoxon sign-ranked tests. The findings showed that Indonesia’s manufacturing companies formulated a positive dividend policy during the COVID-19 pandemic. The stock market reaction to this corporate action was weak, meaning it became sluggish during a crisis. These results indicate that the effort to signal the market positively was ineffective. Therefore, companies must formulate corporate actions or other managerial policies to reduce capital market sluggishness in crisis. They should also implement an optimal dividend policy to increase their value to contribute to the Indonesian economy, specifically in crisis conditions, such as the COVID-19 pandemic.

show abstract

Dividend announcement effect analysis before and during the COVID-19 pandemic in the Indonesia Stock Exchange

Cited by 12 publications

References 20 publications

COVID-19, Profitabilitas, dan Kebijakan Dividen: Uji Robustness untuk Model Mediasi Menggunakan SEM Berbasis Kovarian

COVID-19, Profitabilitas, dan Kebijakan Dividen: Uji Robustness untuk Model Mediasi Menggunakan SEM Berbasis Kovarian

How Does Stock Market React to Dividend Announcement? An Empirical Evidence from Tanzania Listed Firms

COVID-19 Pandemic, Dividend Policy, and Stock Market Reaction: Evidence from the Manufacturing Companies in Indonesia

Contact Info

Product

Resources

About