The effects of stock splits on stock liquidity

被引：2

作者：

Huang G.-C. ^{[1
]}

Liano K. ^{[2
]}

Pan M.-S. ^{[3
]}

机构：

[1] Department of Accounting and Finance, Alabama State University, Montgomery, 36101-0271, AL

[2] Department of Finance and Economics, Mississippi State University, Mississippi State, 39762, MS

[3] Department of Finance and Supply Chain Management, Shippensburg University, Shippensburg, 17257, PA

来源：

Journal of Economics and Finance | 2015年 / 39卷 / 1期

关键词：

Attention-grabbing; Liquidity; Signaling; Stock splits;

D O I：

10.1007/s12197-013-9250-6

中图分类号：

学科分类号：

摘要：

This study examines the effects of stock splits on stock liquidity. We find that most liquidity measures increase substantially around the stock split announcement. After the announcement date, split firms’ liquidity declines, but is still above the pre-split level. However, after the ex-date, the liquidity drops below the pre-split level. Thus, the impact of stock splits on stock liquidity appears to be short-lived. We also find that the change in liquidity can significantly explain the announcement effect, but not the ex-date effect. Overall, our results seem to be more consistent with the signaling hypothesis and/or the attention-grabbing hypothesis than with the improved liquidity hypothesis. © 2013, Springer Science+Business Media New York.

引用

页码：119 / 135

页数：16

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