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...

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...

The registration date of a seasoned equity offering marks the beginning of the offering process and serves to galvanize further scrutiny and information gathering about the issuer. We posit that the market reaction to this new additional information influences issuers' decisions about their...

Registrations of SEOs serve to galvanize information gathering about issuers. We posit that market reaction to new information influences issuers' decision about their final offer size. The offer size relative to the amount filed initially is a parsimonious measure which helps predict subsequent...