Long-term valuation effects of stock splits

1995 ◽  
Vol 19 (3) ◽  
pp. 119-134
Author(s):  
Aigbe Akhigbe ◽  
Jeff Madura ◽  
Stephen P. Zera
Keyword(s):  
Stock Splits ◽  
Valuation Effects

Long-Term Returns Predictability Following Stock Splits: The Blind Side

2016 ◽  
Author(s):  
Ahmed M. Elnahas ◽  
Lei Gao ◽  
Ghada M. Ismail
Keyword(s):  
Stock Splits ◽  
Blind Side ◽  
Returns Predictability

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

Reverse Stock Splits in the Biotechnology Industry: An Effectuation Approach

2015 ◽  
Vol 21 (1) ◽  
Author(s):  
Wei Wu ◽  
Robert Couch ◽  
Yulianto Suharto ◽  
Mark J. Ahn
Keyword(s):  
Abnormal Returns ◽  
Biotechnology Industry ◽  
Stock Splits ◽  
Firm Age ◽  
Split Ratio ◽  
Ratio Size ◽  
Reverse Stock Splits ◽  
Biotech Industry ◽  
Reverse Stock Split

Using an effectuation theory lens, we study reverse stock splits in the biotech industry where significant uncertainty makes specific scenarios of success difficult to predict. We conjecture and find that, in contrast to other environments where there is less uncertainty, reverse stock splits in the biotech industry are followed by positive abnormal returns over the subsequent 1- to 12-months. Also consistent with our effectuation-based predictions, we find that these returns are positively related to the reverse split ratio, size, cash holding, and long-term debt, and negatively related to the market-to-book ratio and firm age. We also find that liquidity increases after a reverse stock split. These results suggest that the concept of effectuation theory is better suited to analyzing reverse stock splits in the biotech industry. 

Long-term valuation effects of bank acquisitions

1994 ◽  
Vol 18 (6) ◽  
pp. 1135-1154 ◽  
Author(s):  
Jeff Madura ◽  
Kenneth J. Wiant
Keyword(s):  
Valuation Effects

scholarly journals Long-term Determinants of Valuation Effects

2019 ◽  
Author(s):  
Kyunghee Min
Keyword(s):  
Valuation Effects

scholarly journals Earnings management and long-term performance: evidence from reverse stock splits

2009 ◽  
Vol 7 (2) ◽  
pp. 420-439
Author(s):  
Michael Gombola ◽  
Amy Yueh-Fang Ho ◽  
Yi-Kai Chen
Keyword(s):  
Earnings Management ◽  
Balance Sheet ◽  
Abnormal Returns ◽  
Stock Splits ◽  
Reverse Stock Splits ◽  
Managerial Optimism ◽  
Reverse Stock Split ◽  
Term Performance

This study investigates earnings management and long-term stock performance surrounding reverse stock splits. It is designed to provide evidence on the role of managerial pessimism and discretionary current accruals. Discretionary current accruals are used to measure earnings management. These discretionary current accruals are measured in our study using the balance sheet approach as well as the cash flow statement approach. We find consistent evidence of negative discretionary current accruals prior to reverse stock splits. Such negative discretionary accruals are consistent with managerial pessimism prior to a reverse stock split. Such pessimism is warranted by the observed negative market reaction to a reverse split announcement and the negative abnormal returns observed after reverse splits. Negative discretionary current accruals are also consistent with smoothing of earnings during difficult and challenging periods for the firm. Our study might provide an alternative to the opportunism explanation. It also provides additional evidence buttressing the role of managerial optimism and pessimism in explaining earnings management.

The valuation effects of long‐term changes in capital structure

2006 ◽  
Vol 2 (1) ◽  
pp. 4-18 ◽  
Author(s):  
Cécile Carpentier
Keyword(s):  
Capital Structure ◽  
Valuation Effects ◽  
Long Term Changes

The valuation effects of stock splits and stock dividends

1984 ◽  
Vol 13 (4) ◽  
pp. 461-490 ◽  
Author(s):  
Mark S. Grinblatt ◽  
Ronald W. Masulis ◽  
Sheridan Titman
Keyword(s):  
Stock Splits ◽  
Valuation Effects ◽  
Stock Dividends

The long-term valuation effects of voluntary dual class share unifications

2015 ◽  
Vol 31 ◽  
pp. 171-185 ◽  
Author(s):  
Beni Lauterbach ◽  
Anete Pajuste
Keyword(s):  
Valuation Effects ◽  
Dual Class

Do Reverse Stock Splits Benefit Long-term Shareholders?

2012 ◽  
Vol 18 (4) ◽  
pp. 439-449 ◽  
Author(s):  
Jae-Kwang Hwang ◽  
Young Dimkpah ◽  
Alex I. Ogwu
Keyword(s):  
Stock Splits ◽  
Reverse Stock Splits
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