Faithin Omaha eBook Collection

Download or read book The Effects of Forward Stock Split Announcements on Stock Price Performance: An Event Study Analysis of S&P 500 Companies written by Steffen Maxim Hübener and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the effects of forward stock split announcements on the stock price performance of S&P 500 firms listed on the New York Stock Exchange (NYSE) or the NASDAQ Stock Exchange Global Select Market (NASDAQ) in the US between January 1, 2000, and June 1, 2023. In an event study, abnormal returns, their significance, and an evaluation of the effect of independent variables on cumulative abnormal returns are analyzed. These results are then linked to previous findings in the academic literature. The results reveal the presence of abnormal returns within the event window for certain cases, although the effects of the examined independent variables within the multivariate regression present a less conclusive picture. The independent variables examined include the stock split factor, analyst recommendation means, firm size, and ETF ownership. This study demonstrates that the relationships identified in samples with companies of varying sizes cannot be directly applied to large-cap companies of the S&P 500. Moreover, the variables that can be directly influenced by company management only show statistical significance in a few cases, indicating a more complex relationship at hand.