Reminiscing Stock Splits Announcement: A Malaysian Case

Authors

  • Zahiruddin Ghazali Finance Department, School of Economics, Finance and Banking, Universiti Utara Malaysia
  • Fauziah Md Taib School of Management, Universiti Sains Malaysia
  • Noraini Othman Management Department, School of Business Management, Universiti Utara Malaysia

Abstract

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.

Keywords:

Stock-splits, Event studies, Malaysia

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Published

2014-07-15

How to Cite

Ghazali, Z. ., Taib, F. M., & Othman, N. . (2014). Reminiscing Stock Splits Announcement: A Malaysian Case. International Journal of Business, Economics and Management, 1(7), 136–145. Retrieved from https://archive.conscientiabeam.com/index.php/62/article/view/1114

Issue

Vol. 1 No. 7 (2014)

Section

Articles