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Full-Text Articles in Business
How Does Split Announcement Affect Stock Liquidity? Evidence From Bursa Malaysia, S. Amir Tabibian, Zhaoyong Zhang, Mohsen Jafarian
How Does Split Announcement Affect Stock Liquidity? Evidence From Bursa Malaysia, S. Amir Tabibian, Zhaoyong Zhang, Mohsen Jafarian
Research outputs 2014 to 2021
© 2020 by the authors. Licensee MDPI, Basel, Switzerland. This study examines the impact of stock splits on stock liquidity in Bursa Malaysia from 2004–2018. The study uses event study methodology and investigates liquidity changes, the role of liquidity, and the relationship between abnormal returns and liquidity as well. We found a significant liquidity improvement on the splits announcement, announcement of book closing date and split execution date (Ex-date), while it declined after the split Ex-date. The findings also indicate that firms with a low-level liquidity prior to split announcements experienced an increase in liquidity after Ex-date. Using panel data …
Does R&D Expenditure Volatility Affect Stock Return?, Erwei Xiang, Dominic Gasbarro, Grant Cullen, Wenjuan Ruan
Does R&D Expenditure Volatility Affect Stock Return?, Erwei Xiang, Dominic Gasbarro, Grant Cullen, Wenjuan Ruan
Research outputs 2014 to 2021
The relation between the volatility of R&D expenditure and stock return may be influenced by disruptive adjustment costs, emerge from earnings management, or reflect the actions of managers attempting to control the overinvestment of technocrats. Using 5,178 publicly listed US firms from 1980 to 2018, we find a negative relation between R&D volatility and return, which is moderated by firm size. We conclude that investors react negatively to the disruptive effect of changes to R&D expenditure, except for small firms. In small firms, the benefit of the governance mechanism of varying R&D expenditure to control overinvestment outweighs the cost of …