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...

We investigate the interaction between friendship, social preferences, and deceptive behavior. We implement a sender- receiver game, in which senders choose from a distinct set of allocations that embodies a multi-dimensional set of potential lies. A novelty of our design is that it directly...