Czy podział akcji maksymalizuje bogactwo akcjonariuszy?
Do stock splits maximize shareholders’ wealth?
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: stock splits; shareholders’ wealth; abnormal returns
Summary/Abstract: Among different corporate events stock splits have remained the ones that have continuously puzzled researchers and practitioners around the globe. Even though they do require some costs like administrative fees paid to respective regulatory institutions or advisory costs, stock splits, at least theoretically, should not cause any measurable effects. However, literature has examples that indicate some of the anomalies from the perspective of efficient market hypothesis. I run an analysis of the impact of stock-split announcement on the oneday abnormal returns for companies from the Polish capital market. Moreover, I consider the abnormal performance in the event window [–40; +40]. I find 1-percent significant negative abnormal returns in the event window [–40; +40]. The results prove that market participants perceive stock splits as a negative signal. Regardless of the direction of the abnormal returns there arises the question about the efficiency of the Polish capital market since stock splits due to the fact, for instance, they do not alter company’s ability to generate future cash flows essentially, should not imply any stock price reaction.
- Issue Year: 2012
- Issue No: 246
- Page Range: 391-402
- Page Count: 12
- Language: Polish