Hou and Moskowitz (2005) document that common stocks with more price delay in reflecting information yield higher returns and that the delay premium cannot be explained by the CAPM, Fama-French three-factor model, or Carhart's four-factor model. It cannot be explained by conventional liquidity...

We hypothesize that managers use stock splits to attract more uninformed trading so that market makers can provide liquidity services at lower costs, thereby increasing investors' trading propensity and improving liquidity. We examine a large sample of stock splits and find that, consistent with...

Managers have repeatedly indicated in surveys that stock splits are intended to improve liquidity. However, previous studies using bid-ask spread and turnover as measures of liquidity find results to the contrary. This paper offers a new perspective on the issue. Stock splits can make buying...