Series Vol. 18 , 13 September 2023
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Stock splits can increase liquidity and also attract smaller investors, although no single study has shown that stock splits have an effect on stock prices. The primary aim of this project was to find the impact of stock splits on stock prices. This paper uses Amazon and Google stock price data for research. The event study and market model were used to analyze the relevant data and to explore the effect. It includes a total of four events on the announcement day and implementation day of the two companies. The study results show that stock splits do have an impact on share prices.
effect of stock splits, market modle, event study
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.