scholarly journals Stock split, unseasoned equity offering, and firm value: evidence from the Korean stock market

2016 ◽  
Vol 13 (3) ◽  
pp. 105-109
Author(s):  
Chune Young Chung ◽  
Kangjin Ju ◽  
Doojin Ryu
Keyword(s):  
Stock Market ◽  
Firm Value ◽  
Negative Impact ◽  
Stock Splits ◽  
Equity Offerings ◽  
Korean Stock Market ◽  
Stock Split ◽  
Before And After ◽  
The Difference ◽  
Equity Offering

This study examines the extent to which announcements of stock splits and unseasoned equity offerings (capital increase without consideration) affect firm values in the Korean stock market. The authors find that, based on analyses of the cumulative abnormal return (CAR) around the announcement dates, CARs are significantly positive for both corporate events. This result suggests that both events are positive in relation to the firm’s value. The authors also examine whether the performance of firms that execute stock splits and/or unseasoned equity offerings differs from that of firms that do not, before and after their announcement dates; we do so by using the difference-in-difference test. The results indicate that a stock split is unrelated to improved firm performance following the announcement, and that an unseasoned equity offering can even have a negative impact on performance. Hence, the presence of stock splits and unseasoned equity offerings does not seem to support the signaling hypothesis, which predicts firms’ positive performance following an announcement

scholarly journals Efisiensi Manajemen Modal Kerja Sebelum dan Sesudah Peristiwa Stock Split pada Perusahaan yang Terdaftar di BEI

JEMAP ◽  
2019 ◽  
Vol 1 (2) ◽  
pp. 221
Author(s):  
Dayana Florencia ◽  
Bonifatius Junianto Wibowo
Keyword(s):  
Performance Index ◽  
Efficiency Index ◽  
Stock Splits ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Management Efficiency ◽  
Stock Split ◽  
Before And After ◽  
The Difference

This research was conducted to determine the efficiency of working capital management carried out by companies that do stock splits. The samples used in this research  are 11 firms that did stock splits in 2013. Indicators of efficiency are performance index, utilization index and efficiency index. Whereas, paired t test  was used to determine the difference in the efficiency of working capital management between before and after the stock split both from the Performance Index, Utilization Index, and Efficiency Index. The results of this study indicate that the company is efficient both before and after the stock split, and there is no difference in the efficiency of working capital management between before and after the stock split. It  means  that all companies which did stock splits are still able to manage their working capital optimally to create sales. In the future, firms should be able to increase sales more than before so that the efficiency of working capital management becomes higher. Besides, Investors should also invest their money in the company, which has high working capital management efficiency. The reason is that firms with high working capital management efficiency usually generate large profits. For further research, it is better to use a long period of years so that the differences can be known with certainty.

scholarly journals The Impact of the Capture of Leaders of Criminal Organizations on the Labor Market: Evidence from Mexico

2021 ◽  
Author(s):  
Daniel Osuna Gómez ◽  
Keyword(s):  
Labor Market ◽  
Census Data ◽  
Negative Impact ◽  
Difference Analysis ◽  
Criminal Organizations ◽  
Before And After ◽  
Economic Census ◽  
The Difference ◽  
Integral Assessment ◽  
The Impact

This paper estimates the impact of the capture of leaders of criminal organizations on the labor market in municipalities where these organizations operated between 2004 and 2006. The difference-in-difference analysis compares different employment outcomes in cartel locations and the rest, before and after the capture of cartel leaders. The results show that captures caused a decrease in nominal wages and paid employment in cartel municipalities. Using Economic Census Data, I find that captures also caused a fall in the number of establishments and had a negative impact on other establishment outcomes. This document focuses exclusively on the impact of the capture of leaders of criminal organizations on the labor market until 2011 without studying other possible consequences, and thus does not make an integral assessment of this policy

scholarly journals ANALISIS HARGA SAHAM, VOLUME PERDAGANGAN SAHAM DAN VARIAN RETURN SAHAM TERHADAP BID ASK SPREAD PADA MASA SEBELUM DAN SESUDAH STOCK SPLIT PADA PERUSAHAAN YANG TERDAFTAR DI BEI TAHUN 2011 – 2015

2018 ◽  
Vol 10 (2) ◽  
Author(s):  
Kevin Immanuel ◽  
Oktafalia Marisa Muzamil
Keyword(s):  
Stock Prices ◽  
Trading Volume ◽  
T Test ◽  
Wilcoxon Test ◽  
Stock Splits ◽  
Volume Activity ◽  
Bid Ask Spread ◽  
Significant Difference ◽  
Stock Split ◽  
Before And After

<p><em>The stock split policy is taken by the company to keep stock prices not too high so that its stock can reach many investors and increase stock liquidity. This study also aims to measure whether there is a difference before and after the company does a stock split through bid ask spread.</em></p><p><em>This research method uses event study about market reaction to information from stock split announcement.This type of research includes descriptive research using quantitative data, while data collection techniques consist of library techniques and documentation techniques. </em></p><p><em>The results showed that the test for normality only trading volume activity (TVA) that qualify and can do paired samples t-test, while the stock price, the variant return and bid ask spread is done by using Wilcoxon test because it does not pass the test of normality. In the paired sample t-test, the results show that there is significant trading activity volume difference before and after stock split. In the Wilcoxon test, the results show that there is no significant price difference before and after stock split, there is no significant difference of return variance before and after stock split, and there is no significant bid ask spread before And after stock splits.</em></p><p><em>The conclusions can be drawn based on the results of the study that the market conditions are in the bearish market and investors do not provide a quick feedback to the stock split. However, stock splits have increased liquidity from firms due to stock splits to n per sheets and reduced asymmetry costs to be borne by investors. Suggestions from researchers to investors are investors can take advantage of stock split events and must be observant in seeing the stock of a particular company that has prospects, good performance and good reputation in the community. For the company, the company should be wise in determining the ratio for stock prices to be optimal and consider whether the stock market is bearish / bullish market when doing stock split policy.</em></p><strong><em>Keywords</em></strong><em>: stock prices, return, trading volume activity, bid ask spread, and stock split</em>

scholarly journals Analisis Pengaruh Stock Split Terhadap Volume Perdagangan, Harga Saham, dan Abnormal Return pada Perusahaan yang Terdaftar di BEI Periode 2017 - 2018

2020 ◽  
Vol 4 (1) ◽  
pp. 84
Author(s):  
Agus Amanda Tanoyo
Keyword(s):  
Stock Prices ◽  
Trading Volume ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Rank Test ◽  
Volume Activity ◽  
Stock Split ◽  
Before And After ◽  
Signed Rank Test ◽  
The Difference

This study aims to determine the difference in the trading volume activity, stock prices and abnormal returns before and after the announcement of a stock split. The population of this study are all companies listed in Indonesia Stock Exchange that take corporate action in the form of stock split at period 2017-2018. Sampling using purposive sampling. Based on the sampling criteria predetermined number of samples acquired 24 stocks. The analytical method used is the analysis Wilcoxon Signed Rank Test with the observation period (event window) is 14 days. The results showed that there were differences in the trading volume activity and stock prices before and after the announcement of stock split, while the last hypothesis showed that there were no differences in abnormal returns before and after the announcement of stock split.

Market Liquidity and Momentum Profits : Evidence from the Korean Stock Market

2018 ◽  
Vol 26 (4) ◽  
pp. 497-524
Author(s):  
Changha Kim ◽  
Changjun Lee
Keyword(s):  
Stock Market ◽  
Liquidity Risk ◽  
Market Liquidity ◽  
Momentum Effect ◽  
Momentum Strategy ◽  
Full Sample ◽  
Momentum Profits ◽  
Significant Difference ◽  
Korean Stock Market ◽  
The Difference

Previous literature in the Korean stock market has shown that the momentum effect is not observed during pre-2000 period while it is observed during post-2000 period. Given that market illiquidity has substantially decreased during post-2000 period, we examine whether the level of market illiquidity affect the momentum profits. The central findings are summarized as follows. First, our full-sample analysis shows that market liquidity is positively associated with momentum profits, meaning that the observed momentum effect during post-2000 period is related to the decrease in market illiquidity. Second, during pre-2000 period, when the market illiquidity is very high, the illiquidity of past losers is extremely high compared to that of past winners. However, there is no significant difference in illiquidity between winners and losers during post-2000 period. Third, based on this result, we conjecture that the momentum effect is related to the different compensation for liquidity risk between past losers and winners, and test whether this is indeed the case. We find significant momentum profits over the whole period when we consider the compensation for the liquidity risk of past losers and winners. In addition, during pre-2000 period, the return on momentum strategy that controls the liquidity risk is substantially higher than the actually observed momentum profits. In sum, our study suggests that the difference in compensation for liquidity risk between past losers and winners is very important in understanding the momentum effect in the Korean stock market.

An Empirical Study of Stock Split Announcements of Select BSE Sectors Using Event Study Methodology

2015 ◽  
Vol 6 (1) ◽  
pp. 1 ◽  
Author(s):  
Asha Nadig
Keyword(s):  
Health Care ◽  
Stock Market ◽  
Event Study ◽  
Abnormal Returns ◽  
Market Model ◽  
Stock Splits ◽  
Consumer Durables ◽  
Stock Market Reaction ◽  
Stock Split ◽  
Indian Stock Market

This study examines the stock market reaction to stock splits between 2002 and 2013 of 6 sectors of BSE-Auto, Bankex, Consumer Durables, FMCG, Health Care and IT sectors to find out if the Indian stock market is semi-strong efficient or not. The methodology used is event study under the market model. Samples of 14 stock splits are considered spread across 6 sectors. The results indicate that there are significant positive abnormal returns prior to split announcements. On the day of split announcement, 1 sector reacts positively (Health Care-3.3%) and the 5 react negatively (Auto -1%, Bankex -0.9%, CD -0.3%, FMCG -1%, and IT-1%). The results indicate that the null hypothesis, H<sub>0</sub>1, that there is no significant AAR around the stock split announcement dates is accepted.

scholarly journals Analisis Kinerja Keuangan PT. BNI (Persero) Tbk Sebelum dan Sesudah Melakukan Seasoned Equity Offerings

2018 ◽  
Vol 3 (1) ◽  
pp. 34
Author(s):  
NANCY IKA ERVINA ◽  
MUSDHOLIFAH MUSDHOLIFAH
Keyword(s):  
Financial Performance ◽  
Seasoned Equity Offerings ◽  
Equity Offerings ◽  
Seasoned Equity Offering ◽  
Public Company ◽  
Before And After ◽  
Operational Activities ◽  
A Company ◽  
Better Than ◽  
Equity Offering

Seasoned equity offering (SEO) is done by public company which need seasoned loan to costing operational activities and invest.  Except to costing operational activities and invest a company, this offering can used to looking for seasoned loan to pay company loan. The aim of this study is to analyze financial performance of PT. BNI (Persero) Tbk before and after seasoned equity offering (SEO) with CAMELS (Capital, Assets Quality, Management, Equity, Liquidity, dan Sensitivity) measurement. This research represent descriptive which purposed to collect information about exist symptom.  This research is done in PT. BNI (Persero) Tbk. Ratio analysis are using Capital : CAR, Assets Quality : KAP1 dan KAP2, Earning : ROA dan BOPO, Liquidity : NCM to CA dan LDR, which later from the ratio can be explained its meaning. The conclusion of this research that financial performance PT. BNI (Persero) Tbk generally before seasoned equity offering (2006) is better than after seasoned equity offering (2008) which is in first period (January – March), second period (April – June), and third period (July – September). Therefore in fourth period (October  - December) 2008, financial performance PT. BNI (Persero) Tbk is better than 2006.

scholarly journals ANALISIS PEMECAHAN SAHAM (STOCK SPLIT): DAMPAKNYA TERHADAP LIKUIDITAS PERDAGANGAN SAHAM DAN PENDAPATAN PERUSAHAAN PUBLIK DI INDONESIA

2019 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Susi Dwimulyani
Keyword(s):  
Logistic Regression ◽  
Stock Market ◽  
Hypothesis Test ◽  
Market Price ◽  
T Test ◽  
Stock Trading ◽  
Operating Income ◽  
Stock Split ◽  
Before And After ◽  
Kolmogorov Smirnov

<p><em>This research is designed to examine the stock split in Indonesia Capital Market. We want to get empirical evidence the relationship and the effect of stock market price and frequency of stock trading to stock split actions. We also want to know the defferences of frequency of stock trading and companies operating income, before and after stock split. Research samples were selected using purposive (judgement) sampling method<br /> among listed company in Jakarta Stocks Exchange (JSX) and ninety two companies could meet as research sample, where they are the company that listed from 2000 - 2006. Afterwards this samples classified into fourty six stock splitter companies and fourty six non stock splitter companies. Before hypothesis test, normality data test using one sample Kolmogorov Smirnov test to determine whether the data were normal or not, multicolinearity test to determine whether discovered relationship among independent variables and outocorelation test to examine the correlation error between period. The hypothesis test are tested using the logistic regression to see weather the stock market price and frequency of stock trading have significant influence to the stock split, and using the paired sample t test to compare the fourty six stock splitter companies have the increasing frequency of stock trading and operating income, before and after stock split. The result of the logistic regression showed that stock market price influence stock split but the frequency of stock trading did not. The result of paired t-test showed that there had no increasing frequency of stock trading and operating income before and after stock split.</em></p>

scholarly journals Analisis Pengaruh Stock Split Terhadap Harga Saham, Abnormal Return Dan Risiko Sistematik Saham Perusahaan (Studi Pada Perusahaan Yang Terdaftar Di Bei 2016-2018)

2019 ◽  
Vol 4 (1) ◽  
pp. 95
Author(s):  
Nindi Vaulia Puspita ◽  
Kartika Yuliari
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Abnormal Return ◽  
Systematic Risk ◽  
Stock Splits ◽  
Reverse Stock Splits ◽  
Stock Split ◽  
Before And After ◽  
Reverse Stock Split ◽  
Corporate Actions

The purpose of this study is to analyze the effect of stock split on stock price, abnormal return and systematic risk of stock, The sample in this study as many as 82 companies  are doing stock splits in the period 2016-2018 with the requirement that no other corporate actions such as mergers and acquisitions or reverse stock splits. The result indicated there are differences in stock prices and abnormal return before and after the stock split event, and the systematic risk no difference after and before the stock split event. This condition because of the strong internal factors of the company, this is indicated by no effect of systematic risk (beta) on stocks due to unstable market because investors buy stocks in the short term so they are not affected by systematic risk. Penelitian bertujuan untuk melakukan analisis pengaruh stock split terhadap harga saham, abnormal return dan risiko sistematik saham, sampel penelitian terdiri dari  82 perusahaan yang melakukan stock split dalam rentang waktu 2016-2018 dengan persyaratan tidak ada corporate action yang lain seperti merger dan akuisisi ataupun reverse stock split. Hasil penelitian menunjukkan terdapat perbedaan harga saham sebelum dan sesudah peristiwa stock split, adanya perbedaan abnormal return sebelum dan sesudah stock split dan  yang terakhir risiko sistematik menghasilkan tidak adanya perbedaan setelah dan sebelum adanya peristiwa stock split, kondisi ini karena kuatnya factor internal perusahaan, hal ini ditunjukkan dengan tidak adanya pengaruh risiko sistematik (beta) terhadap saham yang disebabkan kondisi pasar yang tidak stabil menyebabkan investor membeli saham dengan tujuan jangka pendek sehingga tidak terpengaruh dengan risiko sistematik.

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