Is Share Price Related to Marketability? Evidence from Mutual Fund Share Splits
We examine the quot;marketability hypothesis,quot; which states that stock splits enhance the attractiveness of shares to investors by restoring prices to a preferred trading range. We examine splits of mutual fund shares because they provide a clean testing ground for the marketability hypothesis, since the conventional rationales for common stock splits do not apply. We find that splitting funds experience significant increases (relative to non-splitting matched funds) in net assets and shareholders. Stock splits do appear to enhance marketability
Year of publication: |
[2009]
|
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Authors: | Fernando, Chitru S. |
Other Persons: | Krishnamurthy, Srinivasan (contributor) ; Spindt, Paul A. (contributor) |
Publisher: |
[2009]: [S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
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