COVID-19 AND DIVIDENDS: EVIDENCE FROM POLAND

This paper aims to examine the impact of an unexpected change in level dividend caused by coronavirus (COVID-19) pandemic on share prices Polish stock exchange. Our article analyses period from 1 February 2020 5 June 2020, which was when companies listed primary market Warsaw Stock Exchange (WSE) published information about Boards Directors’ recommendations for 2019. The original group included 140 firms. 56 (40%) fulfilled all study criteria, and these were subsequently divided into 2 groups. groups defined profit distribution. first consisting 38 (68% surveyed) consisted firms unexpectedly announced plans retain profits company or a payment but with lower value than previous year (cancellation reduction amount). second 18 (32% comprised those willingness pay per at higher (increase research confirmed that announcement cancellation is essential price-creating securities has significant prices. In situation uncertainty external factors, such as pandemic, sensitivity individual lockdown return normality have negative market. They cause fall expected, especially they are accompanied shortage recommendation suspend reduce payment.