Stock splits, trading continuity, and the cost of equity capital
نویسندگان
چکیده
منابع مشابه
Stock Splits, Trading Continuity, and the Cost of Equity Capital
Based on the premise that non-trading reflects illiquidity, we hypothesize that managers use stock splits to attract more uninformed trading so that market makers can provide liquidity services at lower costs, which increases investors’ trading propensity and improves liquidity. The improvement allows investors to face reduced liquidity risk and require a lower liquidity premium, which in turn ...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 2009
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2008.09.008