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| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | Stock Split Announcements and Market Reaction in Switzerland |
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| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Number of Pages | 40 |
| Date | 2021 |
| Abstract Text | Existing literature indicates that markets react positively to the announcement of stock splits even though a stock split does not change the fundamental value of a firm. However, to this day, the debate about the cause continues. Consequently, this thesis examines whether liquidity has an impact on the positive market reaction. The event study approach is used to find a significant positive reaction to the announcement of stock splits by Swiss companies. Furthermore, multiple linear regression modeling using two different liquidity measures could not clearly determine whether the cause of the positive market reaction is the improved liquidity. |
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