Lintner’s (1956) partial adjustment model identifies the company’s long-term dividend policy by setting a dividend target payout ratio and the speed of adjustment. And although the model has undergone various modifications and methods of estimation have changed over more than 60 years, it is still a good tool for analyzing dividend decisions made by companies. The aim of the arti-cle is to show the usefulness of the Lintner model for analyzing changes in the company’s dividend policy during the pandemic turmoil. For the illustration, Hy-drotor SA was chosen, which, the longest time at the Warsaw Stock Exchange, continuously pays dividends. The calculations showed that the situation in 2020 resulted in a revision of the company’s long-term dividend strategy, which re-sulted in a lowering of the dividend target payout ratio and a greater attention to the current situation (current net profits)—an increase in the speed of adjustment.
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Author Name: Mieczysław Kowerski / Marcin Sowa
URL: View PDF
Keywords: Lintner model, dividend target payout ratio, coranavirus pandemic, Hydrotor SA
ISSN: 1506-2635
EISSN: 2658-1817
EOI/DOI: 10.25944/znmwse.2021.03.1528
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