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- W2044103437 abstract "We examine, signalling-based versus liquidity-based explanations of stock splits using market data for both industrial firms and depository institutions for the period 1981 to 2000. While both groups react favourably to the announcements of stock splits, we find no significant difference in market responses between the two groups. We further divide the industrial sample firms into two sub-groups [research and development (R&D) firms and nonR&D firms] using R&D activities as proxy for information asymmetry. We find no significant difference in abnormal returns between R&D firms and nonR&D firms, providing evidence against signalling effects of stock splits. We find that the average monthly trading volume following stock splits is significantly higher compared to the pre-split level for both industrial firms and depository institutions. We interpret these results as evidence in support of the liquidity hypothesis." @default.
- W2044103437 created "2016-06-24" @default.
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- W2044103437 date "2007-08-01" @default.
- W2044103437 modified "2023-10-17" @default.
- W2044103437 title "Disentangling the signalling and liquidity effects of stock splits" @default.
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- W2044103437 doi "https://doi.org/10.1080/09603100600749295" @default.
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