Stock splits in a neutral transaction cost environment: Evidence from the Athens Stock Exchange

• Published in: Journal of multinational financial management Vol. 19; no. 1; pp. 12 - 25
• Main Authors: Leledakis, George N., Papaioannou, George J., Travlos, Nickolaos G., Tsangarakis, Nickolaos V.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.02.2009; Elsevier
• Series: Journal of Multinational Financial Management
• Subjects: Earnings; Greece; Liquidity; Market analysis; Market reaction; Price level; Signaling; Signalling; Stock exchange; Stock prices; Stock splits; Stock splits Market reaction Liquidity Signaling; Valuation; Liquidity; Signaling; G14; Stock splits; G3; Market reaction

This paper investigates the value consequences of stock splits in a market where institutional characteristics minimize the effects of price realignment and signaling. We find that despite these market conditions, stock splits by Greek firms produce positive price reaction around the announcement da...