The COVID-19 Pandemic Impact on Corporate Dividend Policy of Sustainable and Responsible Investment in Indonesia: Static and Dynamic Panel Data Model Comparison

This research investigates the impact of crisis due to COVID-19 pandemic on dividend policy green index companies in Indonesia, namely Sustainable and Responsible Investment (SRI) by Biodiversity (KEHATI) Foundation, or SRI-KEHATI indexed companies. The purposive sampling technique was used collect data from listed 2014 2020, using static dynamic panel models. From several models tested, regression with random effects model (REM) fixed effect (FEM) uses least square dummy variable-robust standard error (LSDV-RSE) are best econometric feasible. system generalized method moments (SYS-GMM) is as a suitable robustness test determine regression. It reported that tend distribute dividends positively during this crisis, also statistically proven robust. gives positive signal capital market concerning sluggish trading activity. reaction test, two-approaches, showed business did not provide market, which turned out be pessimistic. Furthermore, profitability financial leverage have robust effect, while previous year affect model, firm size SYS-GMM. Predictors proved influential direction line hypothesis were investment opportunities REM SYS-GMM, age parameter estimation passes specification feasible, whiles biased inconsistency alleged correlation between ui,t PYDi,t failed occur endogeneity issue resolved strongest corrective effect. can reference for investors obtain optimal returns country. An increase value companies; therefore, it contribute optimally sustainability responsibility social environmental aspects.