Do firms conducting reverse splits underperform or overperform in the long run? To resolve this question we investigate the long-term returns following more than 5,000 reverse splits conducted in 24 developed equity markets between the years 1990 and 2016. Using the calendar-time portfolio...

This paper examines the impact of stock splits on liquidity in the Chinese stock market. Liquidity can be generally described as the ability to trade large quantities of financial assets quickly at low cost with less price impact. For stock splits, managers have incentives to use it to attract...

This paper aims to differentiate between optimistic splits and overoptimistic/opportunistic splits. Although markets do not distinguish between these two groups at the split announcement time, optimistic (over-optimistic/opportunistic) splits precede positive (negative) long-term buy-and-hold...