Signaling through timing of stock splits

IF 7.2 1区 经济学 Q1 BUSINESS, FINANCE Journal of Corporate Finance Pub Date : 2024-06-26 DOI:10.1016/j.jcorpfin.2024.102610
Maria Chiara Iannino , Min Zhang , Sergey Zhuk
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引用次数: 0

Abstract

We develop a dynamic structural model of stock splits, in which managers signal their private information through the timing of the split decisions. Our approach is consistent with the empirical evidence which shows that the majority of stock splits have a 2:1 ratio of old-to-new shares, but are announced at various pre-split price levels. Moreover, it explains why split announcement returns are decreasing with the pre-split price. In addition, by matching the model to the data, we estimate the nominal share price preferences of investors and decompose the split announcement return into the value of new information and the signaling cost.

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通过股票拆分时机传递信号
我们建立了一个股票拆分的动态结构模型,在该模型中,管理者通过拆分决策的时机来传递其私人信息。我们的方法与经验证据一致,经验证据显示,大多数股票拆分的新旧股比例为 2:1,但在不同的拆分前价格水平下公布。此外,它还解释了为什么拆分公告收益随拆分前价格的下降而下降。此外,通过将模型与数据相匹配,我们估计了投资者的名义股价偏好,并将拆分公告收益分解为新信息价值和信号传递成本。
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来源期刊
Journal of Corporate Finance
Journal of Corporate Finance BUSINESS, FINANCE-
CiteScore
11.80
自引率
3.30%
发文量
0
期刊介绍: The Journal of Corporate Finance aims to publish high quality, original manuscripts that analyze issues related to corporate finance. Contributions can be of a theoretical, empirical, or clinical nature. Topical areas of interest include, but are not limited to: financial structure, payout policies, corporate restructuring, financial contracts, corporate governance arrangements, the economics of organizations, the influence of legal structures, and international financial management. Papers that apply asset pricing and microstructure analysis to corporate finance issues are also welcome.
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