Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/52141
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dc.contributor.authorMulia, Michiko.
dc.contributor.authorToh, Siew Qi.
dc.contributor.authorWong, Charis Shao Yun.
dc.date.accessioned2013-04-24T03:51:32Z
dc.date.available2013-04-24T03:51:32Z
dc.date.copyright2013en_US
dc.date.issued2013
dc.identifier.urihttp://hdl.handle.net/10356/52141
dc.description.abstractTheoretically, stock splits purely cut the corporation pie into more pieces without bringing any effect. However, past studies were documented with both positive and negative effect of stock splits. Since all past studies used empirical data and the conflicting empirical result on liquidity, signalling, volatility hypothesis, this paper aims to test these hypotheses under double auction experimental asset market. Three different treatments were conducted in our experiment to analyse to the effect of different stock split factor and trading behaviour. In our experimental setting with decreasing fundamental value, we find that stock split significantly reduces bubbles and dampens price deviation from fundamental value. Our findings also show that subjects change their trading strategies from accumulating wealth through selling assets to buying assets after 2:1 stock split occurs. In the event of 5:1 split, subjects become very active in buying and selling assets after the announcement and ex-date stock split. Our research also finds a worsening post-split liquidity and reduction in price volatility in the event of stock split. We also find that subjects tend to have a neutral view on stock split. Hence, this results in no signaling effect.en_US
dc.format.extent108 p.en_US
dc.language.isoenen_US
dc.rightsNanyang Technological University
dc.subjectDRNTU::Social sciences::Economic theory::Microeconomicsen_US
dc.titleInvestors’ reaction to stock split : an experimental asset market approach.en_US
dc.typeFinal Year Project (FYP)en_US
dc.contributor.schoolSchool of Humanities and Social Sciencesen_US
dc.description.degreeBachelor of Artsen_US
dc.contributor.supervisor2Yohanes Eko Riyantoen_US
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Appears in Collections:HSS Student Reports (FYP/IA/PA/PI)
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