A behavioral signaling explanation for stock splits: Evidence from China

• المؤلفون الرئيسيون: CUI, Chenyu, LI, Frank Weikai, PANG, Jiaren, XIE, Deren
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2020
• الموضوعات: Stock split; behavioral signaling; nominal price illusion; loss aversion; Finance; Finance and Financial Management
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/6559; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7558/viewcontent/SSRN_id3541201.pdf
• المؤسسة: Singapore Management University

We propose a behavioral signaling explanation for the positive announcement effects of stock splits. There are two key behavioral ingredients in our model. First, (retail) investors have misconceptions about stock splits that make them view stock splits as good news. Second, investors are loss-avers...