Empirical evidences of stock split market effects

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dc.contributor.advisorGuo, Renkuanen_ZA
dc.contributor.authorMhuru, Trust Taruonaen_ZA
dc.date.accessioned2014-08-13T13:22:39Z
dc.date.available2014-08-13T13:22:39Z
dc.date.issued2011en_ZA
dc.descriptionIncludes abstract.en_ZA
dc.descriptionIncludes bibliographical references.en_ZA
dc.description.abstractUnder normal financial market circumstances (i.e., not under the shadow of financial crisis) it iscommon to believe that buying shares from large institutions leads to high profit. This is becausethe shares are of high trading value due to the solid financial foundation and superiorperformances of large institutions or companies. In contrast to these traders' belief, largecompanies often exercise "stock split" to strengthen the confidence on the company and encourage more investments in the company. A "stock split" increases the number of shares outstanding without increasing the company's capital. A conjecture is that a "stock split" action will increase the market liquidity because of the price decrease of each share; consequently, market trading activities would be intensifying such that log-return will be higher and the volatility also higher accordingly. The financial market literature shows that the impacts of "stock split" were controversial. In other words, the influences on the market of "stock split" did not always behave as the management expected. In this thesis, we intend to use limited available stock split data from NASDAQ to explore some empirical evidences on the impacts of "stock split". We also propose a DEAR-based trend analysis in log-return and market volatility measured by daily trading range for technical analysis on "stock split" impacts.en_ZA
dc.identifier.apacitationMhuru, T. T. (2011). <i>Empirical evidences of stock split market effects</i>. (Thesis). University of Cape Town ,Faculty of Science ,Department of Mathematics and Applied Mathematics. Retrieved from http://hdl.handle.net/11427/6077en_ZA
dc.identifier.chicagocitationMhuru, Trust Taruona. <i>"Empirical evidences of stock split market effects."</i> Thesis., University of Cape Town ,Faculty of Science ,Department of Mathematics and Applied Mathematics, 2011. http://hdl.handle.net/11427/6077en_ZA
dc.identifier.citationMhuru, T. 2011. Empirical evidences of stock split market effects. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Mhuru, Trust Taruona AB - Under normal financial market circumstances (i.e., not under the shadow of financial crisis) it iscommon to believe that buying shares from large institutions leads to high profit. This is becausethe shares are of high trading value due to the solid financial foundation and superiorperformances of large institutions or companies. In contrast to these traders' belief, largecompanies often exercise "stock split" to strengthen the confidence on the company and encourage more investments in the company. A "stock split" increases the number of shares outstanding without increasing the company's capital. A conjecture is that a "stock split" action will increase the market liquidity because of the price decrease of each share; consequently, market trading activities would be intensifying such that log-return will be higher and the volatility also higher accordingly. The financial market literature shows that the impacts of "stock split" were controversial. In other words, the influences on the market of "stock split" did not always behave as the management expected. In this thesis, we intend to use limited available stock split data from NASDAQ to explore some empirical evidences on the impacts of "stock split". We also propose a DEAR-based trend analysis in log-return and market volatility measured by daily trading range for technical analysis on "stock split" impacts. DA - 2011 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2011 T1 - Empirical evidences of stock split market effects TI - Empirical evidences of stock split market effects UR - http://hdl.handle.net/11427/6077 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/6077
dc.identifier.vancouvercitationMhuru TT. Empirical evidences of stock split market effects. [Thesis]. University of Cape Town ,Faculty of Science ,Department of Mathematics and Applied Mathematics, 2011 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/6077en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Mathematics and Applied Mathematicsen_ZA
dc.publisher.facultyFaculty of Scienceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherMathematics of Financeen_ZA
dc.titleEmpirical evidences of stock split market effectsen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMScen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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