search query: @indexterm Event Studies / total: 51
reference: 44 / 51
| Author: | Ikenberry, D. L. Ramnath, S. |
| Title: | Underreaction to Self-Selected News Events: The Case of Stock Splits |
| Journal: | Review of Financial Studies
2002 : SUMMER, VOL. 15:2, p. 489-526 |
| Index terms: | STOCKS STOCK SPLITS FINANCE EVENT STUDIES |
| Language: | eng |
| Abstract: | An emerging literature looking at self selected corporate news events concludes that markets appear to underreact to news. Recent theoretical articles have explored why or how underreaction might occur. However the notion of underreaction is contentious. The authors revisit this issue by focusing on one of the most simple of corporate transactions, the stock split. Prior studies that report abnormal return drifts subsequent to splits do not appear to be spurious nor a consequence of misspecified benchmarks. Using recent cases the authors report a drift of 9% in the year following a split announcement. The authors consider fundamental operating performance as a source of the underreaction. |
SCIMA