Effects of Changing of Listed Stocks’ Par Values in Thailand
Keywords:
stock split, reverse stock split, trading liquidity, returns from splitAbstract
This paper studies the effect of changes in registered par values on trading liquidity and returns of stocks listed in Thailand during 1994-2019. The findings are consistent with previous studies locally and globally. This paper finds that during the par splitting process, liquidity and returns of the stocks increased statistical significantly. However, the study finds the opposite results for the par combined effect on stock returns. In addition, this study finds the evidence of price and liquidity increases before the official announcements for the par changes, indicating that there were insider tradings during the period studied.
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