Banking stocks react differently to dividend news during COVID-19 crisis.
The study looked at how Indian bank stocks reacted to dividend announcements before and during the COVID-19 pandemic. They analyzed data from 2015 to 2021 using a method called Multi-Index Model. Before the pandemic, public sector banks were more affected by decreases in dividends, while private banks were impacted by both positive and negative announcements. During COVID-19, dividend news had a positive effect on bank stock behavior.