The Evidence Against Stock Split


In this article the results of many studies on the effect of stock
split on the shareholders' wealth are reviewed. The results of the
research done on stock split are as follows:
1. Stock splits occurred mostly in the hull market.
2. The Market liquidity of stocks decreases after stock split.
3. Stock split has no effect on shareholders' wealths.
4. The information content of stock split causes stock price to go up