Stock splits in a retail dominant order driven market

Pavabutr, Pantisa; Sirodom, Kulpatra

doi:10.1016/j.pacfin.2010.02.003

Cited by 10 publications

(9 citation statements)

References 25 publications

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“…Besides, split announcements were also found to be effective in improving stock liquidity as they signal positive prospects of the company (Huang et al, 2009;Lin et al, 2009). Pavabutr and Sirodom (2010) revealed that stock splits attract higher retail trading and thereby raised stock liquidity. Moreover, Hillert et al (2016) showed that stock liquidity improved on account of announcements relating to share buybacks and evidenced that companies mainly formulate the buyback policies in confirmation with the liquidity levels for its securities in the market.…”

Section: Measurement Of Stock Market Liquiditymentioning

confidence: 99%

Stock Market Liquidity: A Literature Review

Naik

Reddy

2021

Sage Open

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The purpose of this study is to identify the key aspects that have been studied in the area of stock market liquidity, accumulate their important findings, and also provide a quantitative categorization of reviewed literature that will facilitate in conducting further research. The study analyzes relevant research papers published after the global financial crisis of 2008 and finds that measurement of liquidity, factors influencing liquidity, the relationship between market liquidity and expected return, and market liquidity risk and its relationship with expected returns have been explored in the context of the stock market liquidity. Among these, the factors influencing liquidity have been prominently researched in the reviewed studies. The study concludes that the identified areas can be potentially researched concerning the emerging markets by considering the multidimensional quality of market liquidity. Also, the inter-linkages between the liquidity of emerging markets with that of the global stock markets can be further evaluated.

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Section: Measurement Of Stock Market Liquiditymentioning

confidence: 99%

Stock Market Liquidity: A Literature Review

Naik

Reddy

2021

Sage Open

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“…However, there were studies that reported contradicting findings. Nayak and Prabhala (2001), Huang et al (2006), and Pavabutr and Sirodom (2010) found that stock split was not a credible signal to predict future dividends and earnings of firms. Nayak and Prabhala (2001) argued that the positive market reaction surrounding a split event was due to the dividend information contained in the split announcement, and not because of the split itself.…”

Section: Signalling Theorymentioning

confidence: 99%

“…Huang et al (2006) found weak evidence between stock split and the future profitability of firms. Similarly, Pavabutr and Sirodom (2010) found insignificant evidence that a split announcement was used to signal future earnings performance. Although inconsistent results were reported, in general the majority of the studies agreed with the signalling hypothesis, where stock splits and/or stock dividends had significant positive effects on the stock price of firms.…”

Section: Signalling Theorymentioning

confidence: 99%

Standardization of Trading Board Lot: Effect on Price and Liquidity

Ibrahim

Mohd

Khaw

2018

International Journal of Banking and Finance

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In this study we examined the announcement and implementation effect of the standardization of trading board lot event at the Kuala Lumpur Stock Exchange, which saw a reduction of the minimum trading unit from 1000 or 200 units to 100 units. The event was implemented in three stages, which affected all listed firms. Our findings showed that there were positive cumulative abnormal returns surrounding implementation days, indicating positive market reception of the new policy. The Securities Commission of Malaysia stated that the trading activities had increased significantly after implementation of the standard trading board lot. Regardless, this claim has never been verified from an academic perspective, which spurred us to compare its effects on liquidity in the pre- and post-standardization period. Our univariate tests showed that as a whole, the lot size reduction improved bid-ask spread and trading activities of stocks in Malaysia.

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“…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.…”

Section: Pendahuluanunclassified

Stock Split Dan Likuiditas Saham Di Bei: Pengujian Menggunakan Hipotesis Likuiditas

Setyawan¹

2010

JAKI

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Stock splits in a retail dominant order driven market

Cited by 10 publications

References 25 publications

Stock Market Liquidity: A Literature Review

Stock Market Liquidity: A Literature Review

Standardization of Trading Board Lot: Effect on Price and Liquidity

Stock Split Dan Likuiditas Saham Di Bei: Pengujian Menggunakan Hipotesis Likuiditas

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