What Do Stock Splits Really Signal? Export

@article{citeulike:3203924, abstract = {We observe significant post-split excess returns of 7.93 percent in the first year and 12.15 percent in the first three years for a sample of 1,275 two-for-one stock splits. These excess returns follow an announcement return of 3.38 percent, indicating that the market under-reacts to split announcements. The evidence suggests that splits realign prices to a lower trading range, but managers self-select by conditioning the decision to split on expected future performance. Presplit runup and post-split excess returns are inversely related, indicating that our results are not caused by momentum.}, author = {Ikenberry, David L. and Rankine, Graeme and Stice, Earl K.}, citeulike-article-id = {3203924}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/2331396}, citeulike-linkout-1 = {http://www.jstor.org/stable/2331396}, doi = {10.2307/2331396}, issn = {00221090}, journal = {The Journal of Financial and Quantitative Analysis}, keywords = {sical}, number = {3}, pages = {357--375}, posted-at = {2008-09-08 04:59:46}, priority = {2}, publisher = {University of Washington School of Business Administration}, title = {What Do Stock Splits Really Signal?}, url = {http://dx.doi.org/10.2307/2331396}, volume = {31}, year = {1996} }

TY - JOUR ID - citeulike:3203924 L3 - citeulike-article-id:3203924 N2 - We observe significant post-split excess returns of 7.93 percent in the first year and 12.15 percent in the first three years for a sample of 1,275 two-for-one stock splits. These excess returns follow an announcement return of 3.38 percent, indicating that the market under-reacts to split announcements. The evidence suggests that splits realign prices to a lower trading range, but managers self-select by conditioning the decision to split on expected future performance. Presplit runup and post-split excess returns are inversely related, indicating that our results are not caused by momentum. IS - 3 JF - The Journal of Financial and Quantitative Analysis SN - 00221090 EP - 375 TI - What Do Stock Splits Really Signal? PB - University of Washington School of Business Administration VL - 31 SP - 357 KW - sical AU - Ikenberry, David AU - Rankine, Graeme AU - Stice, Earl PY - 1996/// UR - http://dx.doi.org/10.2307/2331396 ER -