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| Content Provider | Springer Nature Link |
|---|---|
| Author | Hwang, Jae Kwang Dimkpah, Young Ogwu, Alex I. |
| Copyright Year | 2012 |
| Abstract | This paper examines the market response of the reverse stock splits by using the effective date to trace the abnormal returns after reverse splits over the period of 1981 to 2010:3. The findings show that the short-term behavior of the abnormal returns on the effective date is negative and highly significant for all firms. The abnormal returns on the effective month are negative and highly significant. As expected, the cumulative abnormal returns are negative and significant at 10 % level over the period of +1 to +12 months. However, the cumulative abnormal returns from month +13 to month +36 are significantly positive. Our findings also support that institutional investors show confidence by increasing mean holdings of reverse splits of large capital stocks. |
| Starting Page | 439 |
| Ending Page | 449 |
| Page Count | 11 |
| File Format | |
| ISSN | 10830898 |
| Journal | International Advances in Economic Research |
| Volume Number | 18 |
| Issue Number | 4 |
| e-ISSN | 1573966X |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2012-06-30 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Information and Market Efficiency; Event Studies; Insider Trading Reverse stock splits Abnormal return Fama-French-Momentum model Economics general Macroeconomics/Monetary Economics International Economics Microeconomics Economic Growth |
| Content Type | Text |
| Resource Type | Article |
| Subject | Economics and Econometrics |
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