Reverse splits in international stock markets: Reconciling the evidence on long-term returns
Adam Zaremba , Szymon Okoń , Roman Asyngier , Lucia Schroeter
AbstractDo firms conducting reverse splits underperform or overperform in the long run? To resolve this question we investigate the long-term returns following more than 5000 reverse splits conducted in 24 developed equity markets between the years 1990 and 2016. Using the calendar-time portfolio approach, we demonstrate that reverse splits lead to subsequent underperformance, except for microcaps in the sample. This phenomenon is present in all the global regions we examined—North America, Europe, and Asia-Pacific—and is robust to many considerations.
|Journal series||Research in International Business and Finance, ISSN 0275-5319, e-ISSN 1878-3384, (N/A 100 pkt)|
|Publication size in sheets||0.5|
|Keywords in English||Reverse split, Share consolidation, Long-Run returns, International markets, Long-Term event study, Penny stocks, Micro-Caps|
|Score||= 100.0, 15-04-2020, ArticleFromJournal|
|Publication indicators||= 0; : 2018 = 1|
|Citation count*||1 (2020-06-25)|
* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.