The impact of stock splits on liquidity

Detalhes bibliográficos
Autor(a) principal: Semedo, João Miguel Jorge Abreu
Data de Publicação: 2022
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/27373
Resumo: Mestrado Bolonha em Finanças
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spelling The impact of stock splits on liquidityStock SplitsSplit EventsLiquidityTurnover RatioRelative SpreadMestrado Bolonha em FinançasPrior studies suggest that managers of publicly traded companies use stock splits either to improve liquidity by bringing share prices back to a normal trading range, or to convey favourable information to investors and broaden the shareholder base. This study focuses on the first possibility, the one related to liquidity. This dissertation provides new insights on the impact of Stock Splits (SS) on the liquidity of the stock for the firms that perform this corporate action. Liquidity is represented by two measures: Turnover Ratio (TR) and Relative Spread (RS). This analysis was made through two multiple linear regressions where the purpose is to assess if there is a statistical significance of SS for the explanation of the two dependent variables, TR and RS. The analysis was performed for a final sample of 500 companies from the S&P500 index, between the years of 2011 and 2022 and with a total of 111 stock splits done over the 11 and a half years of period analysis. Results found show that the variable SS has a statistical significance for both the first regression (TR) and the second regression (RS), which shows that there is evidence of a linear relationship between stocks splits and liquidity. However, the results also show that the statistically significant coefficient between SS and TR is negative, while the coefficient between SS and RS is positive, which suggests that stock splits actually have a negative impact on liquidity. This empirical result could be acknowledged as an opposition to the optimal price hypothesis, which suggests that splits are used by managers to move share prices into a trading range to increase liquidity.Instituto Superior de Economia e GestãoGonçalves, TiagoRepositório da Universidade de LisboaSemedo, João Miguel Jorge Abreu2023-03-02T13:57:24Z2022-122022-12-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.5/27373engSemedo, João Miguel Jorge Abreu (2022). “The impact of stock splits on liquidity”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestãoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:56:43Zoai:www.repository.utl.pt:10400.5/27373Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:10:51.231412Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The impact of stock splits on liquidity
title The impact of stock splits on liquidity
spellingShingle The impact of stock splits on liquidity
Semedo, João Miguel Jorge Abreu
Stock Splits
Split Events
Liquidity
Turnover Ratio
Relative Spread
title_short The impact of stock splits on liquidity
title_full The impact of stock splits on liquidity
title_fullStr The impact of stock splits on liquidity
title_full_unstemmed The impact of stock splits on liquidity
title_sort The impact of stock splits on liquidity
author Semedo, João Miguel Jorge Abreu
author_facet Semedo, João Miguel Jorge Abreu
author_role author
dc.contributor.none.fl_str_mv Gonçalves, Tiago
Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Semedo, João Miguel Jorge Abreu
dc.subject.por.fl_str_mv Stock Splits
Split Events
Liquidity
Turnover Ratio
Relative Spread
topic Stock Splits
Split Events
Liquidity
Turnover Ratio
Relative Spread
description Mestrado Bolonha em Finanças
publishDate 2022
dc.date.none.fl_str_mv 2022-12
2022-12-01T00:00:00Z
2023-03-02T13:57:24Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/27373
url http://hdl.handle.net/10400.5/27373
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Semedo, João Miguel Jorge Abreu (2022). “The impact of stock splits on liquidity”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestão
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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