Amihud, Yakov; Huh, Sahn-Wook; Subrahmanyam, Avanidhar - 2021
How does an idiosyncratic shock to the liquidity of a stock affect the liquidity and prices of related stocks? Utilizing the feature that the second stage of a two-step spinoff increases the float of an already-public firm, we document strong evidence that the enhanced liquidity of spun-off...