Chen, Honghui; Nguyen, Hoang Huy; Singal, Vijay - In: Journal of Banking & Finance 35 (2011) 9, pp. 2454-2467
We develop a new methodology that controls for both the timing of annual earnings news (Asquith et al., 1989) and the performance prior to split announcements (Barber and Lyon, 1996) to evaluate the information content of stock splits. In contrast to existing evidence, we find that stock splits...