We find that firms are more likely to split their stock if their peer firms have recently done so. The effect is comparable to an increase of 40-50% in the share price. Splitting probability is also increasing in the announcement returns of peer splits. These results are consistent with social...

Social learning often occurs between groups with different levels of experience. Yet little is known about the ideal behavioral rules in such contexts. Existing insights only apply when individuals learn from each other in the same group. In this paper, we close this gap and consider two groups,...