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RESEARCH PRODUCT
Does Methodology Determine the Identification of Stock Split Motivations?: Evidence from Spain
María Eugenia Ruiz MolinaJosé Emilio Farinós ViñasC. José Garcíasubject
Financial economicsStock splitEconometricsStock marketBusinessEmpirical evidenceLogistic regressionStock (geology)Market liquiditydescription
This study investigates the robustness of the results obtained for the possible motivations for firms listed on the Spanish stock market to execute a stock split using different methodologies. Although surveys from executives emphasize the use of stock splits as a way to increase the liquidity of shares, the empirical evidence is not conclusive. Our results, taken from the logit regression, the Kaplan-Meier method, the Cox regression and the automatic interaction detection, all support the hypotheses of signalling and optimal range.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2006-01-01 | SSRN Electronic Journal |