Journal article
Predicting stock splits with the help of firm-specific experiences
Journal of economics and finance, Vol.33, pp.410-421
33
2009
Abstract
Evidence exists of abnormal stock returns at and following stock split announcements. The successful prediction of splits may therefore enhance investor returns, yet few studies attempt such forecasts. We note a neglected aspect of prior prediction studies—that companies enjoying a favorable stock market response to a previous split are more likely to split again. Firms in industries with a record of favorable post-split performance may also be more likely to split. We find that inclusion of these factors enhances split prediction accuracy. We also find that with these factors our split prediction model generates significant abnormal returns.
Details
- Title
- Predicting stock splits with the help of firm-specific experiences
- Publication Details
- Journal of economics and finance, Vol.33, pp.410-421
- Resource Type
- Journal article
- Publisher
- Springer New York LLC; United States
- Series
- 33
- Format
- pdf
- Copyright
- © Springer Science + Business Media, LLC 2008
- Identifiers
- 99380090342606600
- Academic Unit
- Lewis Bear Jr. College of Business; Accounting and Finance
- Language
- English