A Real Determinant of Stock Split Announcements
MetadataShow full item record
This paper examines the aggregate determinants of corporate events of stock splits. The evidence shows that good market conditions can drive firms’ decisions to split shares and increase their associated returns. However, the most dominant effect of macroeconomic factors on stock split announcements is business cycle variations. Firms are most likely to split their stocks when they have been experiencing enough excess earnings in economic upturns. This result is more consistent with the Neoclassical Efficiency Hypothesis. This research sheds light on the reasons why we observe corporate events happening in waves and enhance the understanding of why firms split shares at the aggregate level.
Showing items related by title, author, creator and subject.
Wood, Gavin; Ong, Rachel; McMurray, Clinton (2011)The Australian Government is currently committed to delivering a cut in carbon emissions in response to climate change concerns. In this context, much research and policy attention has been given in recent times to the ...
Pojanavatee, Sasipa (2013)Mutual funds are emerging as an opportunity for investors to automatically diversify their investments in such a way that all their money is pooled and the investment decisions are left to a professional manager. There ...
Recent Progress in Metal-Organic Frameworks for Applications in Electrocatalytic and Photocatalytic Water SplittingWang, W.; Xu, X.; Zhou, W.; Shao, Zongping (2017)The development of clean and renewable energy materials as alternatives to fossil fuels is foreseen as a potential solution to the crucial problems of environmental pollution and energy shortages. Hydrogen is an ideal ...