Stock Splits, Signalling and Liquidity

2009 ◽  
Author(s):  
Balasingham Balachandran ◽  
Geoff Durden ◽  
Vineeta Harshad Juthani ◽  
Eswaran Velayutham
Keyword(s):  
Stock Splits

Rationality of Stock Splits: The Target-Price Habit Hypothesis

CFA Digest ◽  
2000 ◽  
Vol 30 (3) ◽  
pp. 87-89
Author(s):  
Rajiv Kalra
Keyword(s):  
Stock Splits ◽  
Target Price

Signaling Via Stock Splits: Evidence from Short Interest

2011 ◽  
Author(s):  
Marcos Fabricio Perez ◽  
Andriy Shkilko ◽  
Ning Tang
Keyword(s):  
Stock Splits ◽  
Short Interest

The valuation effects of stock splits in NASDAQ

2006 ◽  
Vol 32 (5) ◽  
pp. 401-414 ◽  
Author(s):  
Katerina Lyroudi ◽  
Apostolos Dasilas ◽  
Antonios Varnas
Keyword(s):  
Stock Splits ◽  
Valuation Effects

Institutional Investors and the Information Production Theory of Stock Splits

2015 ◽  
Vol 50 (3) ◽  
pp. 413-445 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Gang Hu ◽  
Jiekun Huang
Keyword(s):  
Private Information ◽  
Institutional Investors ◽  
Stock Splits ◽  
Production Theory ◽  
Information Production ◽  
Extended Version ◽  
Institutional Trading ◽  
Before And After ◽  
Brokerage Commissions ◽  
Abnormal Profits

AbstractWe make use of a large sample of transaction-level institutional trading data to test an extended version of Brennan and Hughes’ (1991) information production theory of stock splits. We compare brokerage commissions paid by institutional investors before and after a split, assess the private information held by them, and relate the informativeness of their trading to brokerage commissions paid. We show that institutions make abnormal profits net of brokerage commissions by trading in splitting stocks. We also show that the information asymmetry faced by firms goes down after stock splits. Overall, our empirical results support the information production theory.

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