Document Type
Article
Abstract
This article investigates how corruption (COR) and the COVID-19 (COV) pandemic affect corporate payout decisions. The sample contains 13,865 firm-years over 2012-2020 and 1,950 firms from 18 Muslim countries. Empirical findings show that neither COR nor COV drives dividends (DIV) and repurchases (REP). However, COV x COR negatively and significantly influences DIV. Namely, firms in highly corrupted Muslim countries have higher DIV during the pandemic–the picture changes in the COVID era. Particularly, firms in higher corrupt countries have higher DIV, which aligns with the substitute model of agency costs, but COR does not affect REP in the pandemic age. This research is the first study assessing the impact of COVID-19 on corporate payouts in Muslim countries by employing a robust bias-corrected and unbiased estimator (fractional dependent variable–DPF).
Recommended Citation
Tekin, Hasan
(2023)
"Does Corruption Matter On Corporate Payouts In The Covid Era?,"
Bulletin of Monetary Economics and Banking: Vol. 26:
No.
4, Article 5.
DOI: https://doi.org/10.59091/2460-9196.1708
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol26/iss4/5
First Page
617
Last Page
636
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Turkiye
Affiliation
Karabuk University