주식분할 정보의 공시효과에 관한 연구

Abstract

Stock split indicates a division of face value. The reason why enterprises split their stock is to secure liquidity and to achieve easier trade with an increase of the number of stock. In general, face split is actively progressed in a perspective of liquidity reinforcement in stock price increase period while face merger is intended rather than split because of anxiety on resource burden in stock price decrease period. Expectation is based on experiences on markets. This study demonstrated whether the results of previous studies on positive abnormal return of stock split may be applied for recent stock market from 1999 to late 2003 after a foreign exchange crisis. For the study, 88 enterprises who officially disclosed stock split from 1999 to 2003 were finally selected. To demonstrate the effect of stock split in varied viewpoints, this study classified the subjects according to date of decision-making on stock split by a board of directors and general meeting of stockholders, split ratio, total assets, number of stock issued, and stock price and compared them. The results of the study are presented as follows: First, official announcement of stock split shows statistically significant positive abnormal return in our stock market. However, the effect is shown on the date of announcement and the next day, and further persistent increase was not found. Cumulative average return reaches at peak on date of announcement and the next day, and then gradually decreases. Persistence of stock reaction after split announcement was not found in this study, but it is found that it has some influence on increase of stock level. Second, the announcement by the board of directors shows higher earning rate than that by the stockholders meeting, which indicates that information effect is more reflected on the date when the board of directors decides the announcement. Third, as a result of study according to split ratio, assets, number of stock issued, and price, small enterprises and those with high split ratio and more number of stock issued showed higher abnormal return, which indicates that higher reinforcement of liquidity influences positively on stock price. However, though this study was intended in various viewpoints, if investigation of stock listing day is added, and strong market and weak market are separately researched, more effective results on information effect of split announcement may be obtained.