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We analyze changes in post-earnings announcement drift around 1,781 two-for-one or greater stock splits reported by an equal number of CRSP firms during the 1972 through 1996 time period. We find that for the smallest firms in our sample, post-earnings announcement drift is eliminated in the...
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Purpose – This paper aims to test the effects that different compensation policies have on managerial discretion with regard to stock options. Design/methodology/approach – Hand-collected data from Securities and Exchange Commission registration statements are used to analyze the effects of...
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