Earticle

초록

영어

We examine liquidity effects of dual-class stock splits that change firms’ ownership structure from one share one vote to two classes with disparate voting rights. Following dual-class splits, effective spreads, price impacts, and order execution difficulty increase and the investor base decreases significantly for both superior- and inferior-voting shares. In contrast, following a matched sample of regular splits, the investor base increases and order execution improves significantly. Pursuant to the adoption of extreme form of corporate governance and weakened shareholder rights, and consistent with the implied effects of a deteriorating information environment, we find that dual-class splits adversely affect stock liquidity.

목차

Abstract
 1. Introduction
 2. Literature Review and Hypotheses
  2.1. Stock Split and Liquidity
  2.2. Pros and Cons of Dual-Class Splits
  2.3. The Liquidity Effect of Dual-Class Splits
 3. Data
  3.1. Sample Selection
  3.2. Characteristics of the Dual-Class and the Matched Firms
  3.3. Investor Base and Dual-Class Splits
 4. Empirical Results
  4.1. Effective Spreads
  4.2. Amihud’s Illiquidity Measure
  4.3. Liu’s (2006) LMx
 5. Cross-Sectional Analyses
 6. Concluding Remarks
 References
 Table

저자

• Joonghyuk Kim [ Korea University ]
• Ji-Chai Lin [ Louisiana State University ]
• Ajai Singh [ Case Western Reserve University ]
• Wen Yu [ Case Western Reserve University ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330