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| Author | : Inki Joo |
| Publisher | : |
| Total Pages | : 438 |
| Release | : 1986 |
| Genre | : |
| ISBN | : |
| Author | : |
| Publisher | : |
| Total Pages | : 498 |
| Release | : 2009-08 |
| Genre | : Dissertations, Academic |
| ISBN | : |
| Author | : Anthony J. Amoruso |
| Publisher | : |
| Total Pages | : 43 |
| Release | : 1999 |
| Genre | : |
| ISBN | : |
We analyze changes in post-earnings announcement drift around 1,781 two-for-one or greater stock splits reported by an equal number of CRSP firms during the 1972 through 1996 time period. We find that for the smallest firms in our sample, post-earnings announcement drift is eliminated in the quarters immediately following the split. The effect is transitory, however, with drift reasserting itself beginning with the third post-split quarterly earnings announcement. The abnormal returns for the largest firms in our sample exhibit insignificant drift in both pre- and post-split periods. These results suggest that stock splits provide information that causes investors - at least temporarily - to more fully incorporate serial correlation into their earnings expectations. The differential effect noted for small and large firms is likely attributable to the richer information environment faced by larger firms, in which the signal provided by a stock split does not constitute a significant incremental contribution. Our results are inconsistent with the transactions costs explanation of drift, which predicts an increase in drift following a split that is invariant to firm size.
| Author | : |
| Publisher | : |
| Total Pages | : 978 |
| Release | : 1989 |
| Genre | : Dissertations, Academic |
| ISBN | : |
| Author | : Paul M. Healy |
| Publisher | : Forgotten Books |
| Total Pages | : 36 |
| Release | : 2017-11-21 |
| Genre | : Business & Economics |
| ISBN | : 9780331631852 |
Excerpt from Earnings and Stock Splits The objective of this paper is to examine whether stock splits convey information about firms' earnings in the period surrounding the split announcements. In order to mitigate any confounding effects of simultaneous dividend changes, only firms that do not pay cash dividends at the time of the stock split are included in the sample. Our tests, based on a sample of 121 stock split announcements from the period 1970-1980, lead to several conclusions. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
| Author | : Anand S. Desai |
| Publisher | : |
| Total Pages | : |
| Release | : 1999 |
| Genre | : |
| ISBN | : |
In this paper, we analyze the information content of stock splits by examining the market's reaction to the joint announcement of both stock splits and cash dividends. Several authors have suggested that splits are merely vehicles to convey information about either dividends or future earnings. If this were the case, one might expect the simultaneous announcement of the dividend to eliminate the marginal informativeness of the split. To the contrary, we find that even after controlling for the information contained in the dividend announcement, splits convey significant information to the market. We also examine whether both dividends and splits are conveying information about the same underlying attribute of firm value, or whether they are jointly providing information about more than one attribute. To study this issue, we employ latent variable/structural equation models. The analysis suggests that there are, in fact, at least two latent variable that are being signalled by the firm. While the information in dividend announcements leads to a statistically significant market revaluation, there is independent information contained in the split signal, and this information is significant in explaining the market's revaluation as well.
| Author | : Helen B. Mason |
| Publisher | : |
| Total Pages | : |
| Release | : 1998 |
| Genre | : |
| ISBN | : |
This study examines the relationship between firm stock split behavior and pre-split institutional ownership. Results identify a positive relationship between pre-split institutional ownership measures and split behavior. A firm size effect implies that larger firms have higher percentages of institutional ownership and that these owners either encourage stock split behavior, have the ability to identify firms with stock split characteristics in the pre-split period, or both. Institutions purchasing shares in the identified firms in the pre-split period, therefore, expect short-term and long-term earnings increases.
| Author | : Gow-Cheng Huang |
| Publisher | : |
| Total Pages | : |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
We examine the relationship between the frequency of stock splits and firms' motives for splitting their stock. Compared to their peers, infrequent splitters show higher post-split operating performance, but not so for frequent splitters. We find that split ratio and liquidity change explain the stock split announcement effect for the frequent splitters. In contrast, the change in operating performance in split year explains the announcement effect for the infrequent splitters. Our results suggest that frequent splits are more consistent with the trading range/improved liquidity hypothesis and infrequent splits are more consistent with the signaling hypothesis.
| Author | : |
| Publisher | : |
| Total Pages | : 606 |
| Release | : 1986 |
| Genre | : Dissertations, Academic |
| ISBN | : |
| Author | : David Bosch |
| Publisher | : GRIN Verlag |
| Total Pages | : 25 |
| Release | : 2011-08 |
| Genre | : Business & Economics |
| ISBN | : 3640975103 |
Seminar paper from the year 2009 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, Humboldt-University of Berlin (Institut für Bank und Börsenwesen), course: Seminar of Banking and Financial Markets, language: English, abstract: There are many theories in literature which try to examine possible reasons for a stock split. While a stock split seems to be just a cosmetic corporate event, it is often claimed that the motivation to carry out a stock split is to signal future profitability or to bring the share price to a preferred trading-range. Additionally there are many papers published, where the impact of a stock split on liquidity and institutional ownership is examined. Some results of these studies are briefly discussed in the Literature Review. Most researchers calculate their abnormal returns with the market model by using the most common index in their economy. In this paper, I check whether sector-indices fit the data better than the CDAX does. In some cases, the sector-indices describe the stock returns better. Another topic of event studies that researchers of the finance area often deal with is whether the assumptions of the market model established by Fama, Fisher, Jensen and Roll (1969) do hold for daily stock returns. I will discuss some of the weaknesses when applied to financial time series and I present two models which can improve the efficiency of the model.
