The “Magic Action” of Stock Splits: Evidence from the Warsaw Stock Exchange 2003–2017

Podgórski Błażej () and Pasierbek Krzysztof
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Podgórski Błażej: Kozminski University, Department of Finance, ul. Jagiellońska 57, Warsaw 03-301
Pasierbek Krzysztof: Kozminski University, 3rd year student of Finance and Accounting, Banking specialization.

Journal of Management and Business Administration. Central Europe, 2020, vol. 28, issue 1, 66-80

Abstract: Purpose: Many researchers claim that split has a positive effect on stock returns. However, if we observe more closely, we notice that this is only an accounting procedure. Therefore, the question arises as to whether stock prices should change. To answer this problem, we checked the market reaction to the division of shares on the Warsaw Stock Exchange.

Keywords: stock split; general meeting of shareholders; event study; capital markets; market stock reaction (search for similar items in EconPapers)
JEL-codes: G12 G14 G28 G40 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:jmbace:v:28:y:2020:i:1:p:66-80:n:4

DOI: 10.7206/cemj.2658-0845.16

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