Reverse Stock Splits and Liquidity in ETFs-Reference-Cited by-同舟云学术

Reverse Stock Splits and Liquidity in ETFs

Published:2023-12-20 Issue:1 Volume:17 Page:4
ISSN:1911-8074
Container-title:Journal of Risk and Financial Management
language:en
Short-container-title:JRFM

Author:

Lobanova Olesya¹,Aidov Alexandre¹^ORCID

Affiliation:

1. College of Business, University of Houston-Victoria, Victoria, TX 77901, USA

Abstract

This study aims to address a gap in the existing literature pertaining to the liquidity of exchange-traded funds (ETFs). Specifically, we examine the effect of reverse share splits on ETF liquidity. In contrast to equities, the utilization of ETFs enables the separation of signaling and liquidity considerations. Findings suggest that liquidity improves after reverse splits in both univariate and multivariate results. In the absence of delisting concerns, results support the liquidity hypothesis of stock splits.

Publisher

MDPI AG

Subject

Finance,Economics and Econometrics,Accounting,Business, Management and Accounting (miscellaneous)

Link

https://www.mdpi.com/1911-8074/17/1/4/pdf

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