Browsing by Author "Qiu M"

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    A Study of the Abnormal Dividend Decisions of New Zealand Firms during COVID-19
    (MDPI (Basel, Switzerland), 2023-10-01) Qiu M; Li X-M
    We investigated the stock return risk associated with the various types of dividend decisions announced by New Zealand firms during the COVID-19 pandemic in 2020. The sample includes a group of firms that initially announced cash dividends but a number of days later made announcements cancelling their payments. Using multinomial logistic regression analysis, we found that higher pre-pandemic payout policy significantly increased the likelihood of a cancellation, an omission or an increase decision. Higher growth and higher profitability reduced the probability of an omission and a reduction decision, respectively. Moreover, higher stock return volatility increased the likelihood of an omission, a reduction or an increase decision. Further event study analysis revealed that investors reacted more feverishly to the announcements of cancellation decisions than any other types of dividend decisions. Moreover, we report strong evidence of negative abnormal returns around the cancellation announcements followed by positive post-announcement price reversals, a pattern that is not observed for the omission announcements. This paper contributes to the literature by studying a cancellation sample and reveals, for the first time, significant shareholder risk associated with cancellation decisions, which was not observed for omission decisions. We alert managers to carefully weigh the costs and benefits of breaking a promise of dividend payout.
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    The global geopolitical-energy uncertainty index and total factor productivity: New evidence from firm-level analysis
    (Elsevier B.V., 2026-01) Dang THN; Balli F; Balli HO; Qiu M; Nguyen H
    This paper examines the impact of the global geopolitical-energy uncertainty (GEU) on firm-level total factor productivity, considering variation across countries, industries, and firm sizes. Employing the novel GEU index proposed by Dang et al. (2024a) and firm-level annual data from 2001 to 2023, we find strong evidence that the GEU index negatively affects firm productivity. There is heterogeneity in the GEU index's impact. Firms in developed countries such as the US, UK, France, and Germany are more negatively affected, whereas Canadian firms show a positive response. Energy-intensive firms and smaller firms experience stronger negative impacts. Mechanism analysis further demonstrates that both firm level characteristics and macroeconomic energy conditions shape productivity responses to GEU. Higher profitability reduces the negative impact of GEU shocks, while higher cost intensity and higher global energy prices amplify the adverse effects, increasing productivity losses. Our baseline results remain robust under different robustness checks. The paper's findings offer guidance for firms to develop effective strategies to manage risks during periods of heightened geopolitical-energy uncertainty.