A Real Determinant of Stock Split Announcements
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...
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| Other Authors: | |
| Format: | Conference Paper |
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World Business Institute Australia
2012
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| Online Access: | http://hdl.handle.net/20.500.11937/16351 |
| _version_ | 1848749151744950272 |
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| author | Hu, May |
| author2 | Tanzil Hoque |
| author_facet | Tanzil Hoque Hu, May |
| author_sort | Hu, May |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T07:16:23Z |
| format | Conference Paper |
| id | curtin-20.500.11937-16351 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:16:23Z |
| publishDate | 2012 |
| publisher | World Business Institute Australia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-163512017-09-13T15:03:21Z A Real Determinant of Stock Split Announcements Hu, May Tanzil Hoque 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. 2012 Conference Paper http://hdl.handle.net/20.500.11937/16351 10.2139/ssrn.1914392 World Business Institute Australia restricted |
| spellingShingle | Hu, May A Real Determinant of Stock Split Announcements |
| title | A Real Determinant of Stock Split Announcements |
| title_full | A Real Determinant of Stock Split Announcements |
| title_fullStr | A Real Determinant of Stock Split Announcements |
| title_full_unstemmed | A Real Determinant of Stock Split Announcements |
| title_short | A Real Determinant of Stock Split Announcements |
| title_sort | real determinant of stock split announcements |
| url | http://hdl.handle.net/20.500.11937/16351 |