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...

Information cascades have been studied in the literature where myopic selfish users sequentially appear and make a decision to buy a product based on their private observation about the value of the product and actions of their predecessors. Bikhchandani et. al (1992) and Banerjee (1992)...

This paper examines social learning when only one of the two types of decisions is observable. Because agents arrive randomly over time, and only those who invest are observed, later agents face a more complicated inference problem than in the standard model, as the absence of investment might...