The Effects of Stock Splits on Bid-Ask Spreads

Conroy, Robert M.; Harris, Robert S.; Benet, Bruce A.

doi:10.2307/2328725

Cited by 89 publications

(91 citation statements)

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“…Some authors like Lakonishok and Lev [Lakonishok, Lev, 1987, pp. 913-932] indicate that the announcement of splits is an important factor that generate an increase in the amount of market transactions; others like Conroy, Harris and Benet [Conroy et. al., 1990[Conroy et.…”

Section: Previous Empirical Research On Stock-splitsmentioning

confidence: 99%

Stock Market Reactions to the Announcements and Executions of Stock-Splits and Reverse Stock-Split

Jamróz

Koronkiewicz

2013

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SummaryThe aim of this paper is to analyze the stock market investors reactions to the events of announcement and execution of stock-splits and reverse stock-splits carried out on Warsaw Stock Exchange (WSE) during the period 2004-2012. The study puts the emphasis on the differences between market reactions to standard stock-splits and reverse stock-splits. The results presented in this paper are based on the methodology of event study. The studied data sample consists of 45 instances of stock-splits and 6 instances of reverse stock-splits that took place on WSE in the specified period of time. Results obtained suggest no statistically significant reaction to the events of: split announcement, split execution and reverse split execution and a statistically significant (mostly negative) reaction to the event of reverse split announcement. Although some anomalies can be observed on close inspection of the data, in general the obtained results can be interpreted as evidence of investors' rationality with regards to events connected with stock-splits on the WSE.

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Section: Previous Empirical Research On Stock-splitsmentioning

confidence: 99%

Stock Market Reactions to the Announcements and Executions of Stock-Splits and Reverse Stock-Split

Jamróz

Koronkiewicz

2013

Optimum

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“…Karena setelah stock split, likuiditas ada yang menurun dan meningkat meskipun terdeteksi bahwa volume perdagangan dan frekuensi perdagangan saham meningkat. Beberapa kelompok studi yang berhasil adalah Baker dan Gallagher (1980), dan Lamoreux dan Poon (1987), sedangkan studi Copeland (1979) dan Conroy et al (1990) tidak berhasil membuktikan hipotesis likuiditas atau optimal trade range. Hasil studi di Indonesia juga beragam, Najmuddin (2002) menemukan fenomena ganda, di satu sisi mendukung kenaikan likuiditas tetapi di sisi lain tidak.…”

Section: Pendahuluanunclassified

“…Hasil studi di Indonesia juga beragam, Najmuddin (2002) menemukan fenomena ganda, di satu sisi mendukung kenaikan likuiditas tetapi di sisi lain tidak. Fatmawati dan Asri (1999) justru menemukan penurunan likuiditas pasca stock split yang berarti mendukung Copeland (1979) dan Conroy et al (1990).…”

Section: Pendahuluanunclassified

“…BEI cenderung order-driven market sementara NYSE lebih bersifat dealer-driven market (Harris 2003;Purwoto dan Tandelilin 2004). Conroy et al (1990) menyatakan dealer jelas sangat concern dengan bid-ask spread, karena merupakan pendapatan utama dalam perdagangan. Lain halnya dengan BEI yang order-driven, bidask spread cenderung dipentingkan di pasar negosiasi.…”

Section: Pendahuluanunclassified

“…Adapun modifikasi dari studi Kim et al(2007) Pavabutr and Sirodom (2010) yang membuktikan adanya perbedaan efek rasio stock split terhadap likuiditas yakni rasio non 2:1 memiliki efek terhadap likuiditas lebih besar dari rasio 2:1. Hasil studi mereka ini berbeda dengan hasil studi Conroy et al (1990) serta Byun dan Rozeff (2003) yang menemukan rasio 2:1 sebagai rasio stock split optimum. Dengan menggabungkan tipe rasio 2:1 dan non 2:1 pada studi ini akan terbukti tipe rasio stock split yang optimum di BEI.…”

Section: Pendahuluanunclassified

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