Stock Split has been a debatable and puzzling phenomenon for financial theoritist. Theoretically, Stock Split will only increase the amount of shared stocks, without increasing the profit for investors. While in practice, some empirical evidences show that market tends to react to the announcement of Stock Split. The objective of this research is to empirically examine about the information content of Stock Split and its influence to stock liquidity.
Stock Split has been a debatable and puzzling phenomenon for financial theoritist. Theoretically, Stock Split will only increase the amount of shared stocks, without increasing the profit for investors. While in practice, some empirical evidences show that market tends to react to the announcement of Stock Split. The objective of this research is to empirically examine about the information content of Stock Split and its influence to stock liquidity.
Stock Split has been a debatable and puzzling phenomenon for financial theoritist. Theoretically, Stock Split will only increase the amount of shared stocks, without increasing the profit for investors. While in practice, some empirical evidences show that market tends to react to the announcement of Stock Split. The objective of this research is to empirically examine about the information content of Stock Split and its influence to stock liquidity.