Ikenberry, David L.; Rankine, Graeme; Stice, Earl K. - In: Journal of Financial and Quantitative Analysis 31 (1996) 03, pp. 357-375
We observe significant post-split excess returns of 7.93 percent in the first year and 12.15 percent in the first three years for a sample of 1,275 two-for-one stock splits. These excess returns follow an announcement return of 3.38 percent, indicating that the market underreacts to split...