Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319661 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Economics, Finance and Administrative Science [ISSN:] 2218-0648 [Volume:] 29 [Issue:] 58 [Year:] 2024 [Pages:] 277-293
Publisher: 
Emerald Publishing Limited, Leeds
Abstract: 
Purpose - This study aims to evaluate the presence of abnormal returns due to stock splits or reverse stock splits in the Brazilian capital market context. Design/methodology/approach The event study technique was used on data from 518 events that occurred in a 30-year period (1987-2016), comprising 167 stock splits and 351 reverse stock splits. Findings The results revealed the occurrence of abnormal returns around the time the shares began trading stock splits or reverse stock splits at a statistical significance level of 5%. The main conclusion is that stock split and reverse stock split operations represent opportunities for extraordinary gains and may serve as a reference for investment strategies in the Brazilian stock market. Originality/value This study innovates by including reverse stock splits, as the existing literature focuses on stock splits, and by testing two distinct "zero" dates that of the ordinary general meeting that approved the share alteration and the "ex" date of the alteration, when the shares were effectively traded, reverse split or split.
Subjects: 
Investment strategies
Market efficiency
Reverse stock split
Stock split
JEL: 
G12
G14
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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