CAN DIVIDEND PAYMENTS MITIGATE THE INFLUENCE OF COVID-19 CRISIS ON EARNINGS MANAGEMENT?

This paper examines whether dividend payments mitigate the influence of COVID-19 crisis on earnings management practices in Brazil. For this purpose, we use a sample 264 Brazilian public firms from 2010 to 2021, applying System Generalized Method Moments (SYS-GMM) regressions. Our main results indicate that, although are more prone engage during period, payout ratio mitigates level. Therefore, show that payment can act as substitute corporate governance mechanism times crisis, since it reduce occurrence management. Additional analyses also support view, showing big levels dividends play role minimizing agency conflicts by reducing level Hence, contribute literature policy and management, which calls for research better understand financial crises periods. Further, shed light how policies maintain or establish its reputation periods crises, benefiting investors, boards, creditors, analysts, policymakers due increase reporting quality.