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The “Magic Action” of Stock Splits: Evidence from the Warsaw Stock Exchange 2003–2017

Author

Listed:
  • Podgórski Błażej

    (Kozminski University, Department of Finance, ul. Jagiellońska 57, Warsaw 03-301)

  • Pasierbek Krzysztof

    (Kozminski University, 3rd year student of Finance and Accounting, Banking specialization.)

Abstract

Purpose: Many researchers claim that split has a positive effect on stock returns. However, if we observe more closely, we notice that this is only an accounting procedure. Therefore, the question arises as to whether stock prices should change. To answer this problem, we checked the market reaction to the division of shares on the Warsaw Stock Exchange.

Suggested Citation

  • Podgórski Błażej & Pasierbek Krzysztof, 2020. "The “Magic Action” of Stock Splits: Evidence from the Warsaw Stock Exchange 2003–2017," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 28(1), pages 66-80, March.
    • Handle: RePEc:vrs:jmbace:v:28:y:2020:i:1:p:66-80:n:4
    DOI: 10.7206/cemj.2658-0845.16
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    stock split; general meeting of shareholders; event study; capital markets; market stock reaction;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G40 - Financial Economics - - Behavioral Finance - - - General

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