The Korean Journal of Financial Management (재무관리연구)
- Volume 24 Issue 4
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- Pages.201-232
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- 2007
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- 1225-0759(pISSN)
Market Responses and Liquidity Effect to Stock Splits in Korea
우리나라에서 주식분할에 따른 시장반응과 유동성효과
- Hwang, Sun-Wung (Dept. of Business Adminstration, Chung-Ang University) ;
- Shin, Woo-Yong (Chung-Ang University)
- Published : 2007.12.31
Abstract
In this study, we investigated public announcements of stock splits using the Korean Stock Market data from 2000 through 2007. The purposes of this study are to examine whether stock splits have the information contents in the Korean capital markets, and to investigate the possible cause of the market reactions. We measured the market reactions with abnormal returns, cumulative abnormal returns and cumulative average abnormal returns. For the purpose, two specific hypotheses were tested. One is 'Signalling Effects' where stock splits function as a signal through which managers transmit a favorable information for investors. The other is 'Liquidity Effects' where stock splits increase the trading convenience. We have th following results. Firstly, positive market effects were found when stock splits were announced. Secondly, there was difference in trading convenience between the high and the low split ratios. Finally, the long term performance through stock splits in the Korean capital markets was not significant.
본 논문은 2000
Keywords