Our research investigates stock splits: why they happen, how they affect shareholder wealth, and whether they enhance liquidity for splitting firms. Prior research has not reached a clear-cut answer as to the role of stock splits. While there is definitely a favorable stock price reaction to the...

In this paper, we provide clinical evidence on market efficiency by studying stock price movements around a particular event--the explosion of the Space Shuttle Challenger. Our work is motivated by the continuing debate on whether the market quickly and accurately processes information. A group...