Dividend suspensions and cash flows during the Covid-19 pandemic: A dynamic econometric model

A-Tier
Journal: Journal of Econometrics
Year: 2023
Volume: 235
Issue: 2
Pages: 1522-1541

Authors (3)

Pettenuzzo, Davide (Brandeis University) Sabbatucci, Riccardo (not in RePEc) Timmermann, Allan (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Firms suspended dividend payments in unprecedented numbers in response to the outbreak of the Covid-19 pandemic. We develop a multivariate dynamic econometric model that allows dividend suspensions to affect the conditional mean, volatility, and jump probability of growth in daily industry-level dividends and demonstrate how the parameters of this model can be estimated using Bayesian Gibbs sampling methods. We find considerable heterogeneity across industries in the dynamics of daily dividend growth and the impact of dividend suspensions.

Technical Details

RePEc Handle
repec:eee:econom:v:235:y:2023:i:2:p:1522-1541
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-29