Reminiscing stock splits announcement: A Malaysian case
This study attempts to understands and verify the effects of stock splits on the abnormal returns of announcing companies share prices using Market Adjusted Returns (MAR) Model.Test findings reveal splits announcements in Malaysia result in positive but insignificant abnormal returns. Additional...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Pak Publishing Group
2014
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/15407/1/IJBEM.pdf http://repo.uum.edu.my/15407/ http://pakinsight.com/?ic=archive&journal=62&month=07-2014&issue=7 |
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| Summary: | This study attempts to understands and verify the effects of stock splits on the abnormal returns of
announcing companies share prices using Market Adjusted Returns (MAR) Model.Test findings
reveal splits announcements in Malaysia result in positive but insignificant abnormal returns.
Additional OLS test was carry out to examine the relationship between companies’ cumulative
abnormal returns (CAAR) and prior dividend yield (PDY). Result from uni-variate regression
analysis shows there is minimal but significant positive relationship between CAAR and PDY. |
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