The impact of stock splits on liquidity
Autor(a) principal: | |
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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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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 |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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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 |
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1799131205924290560 |