액면분할이 주가 및 거래량에 미치는 영향: M&A 방어수단으로의 가능성

Abstract

Stock splits have been reported over 80 cases since they were allowed at the end of 1997.

Traditionally, there are two main perspectives over the stock split impacts on stock prices and

trading patterns; the one is the price in formation effect and the other is the liquidity effect.

But, stock splits seem to be used as a defense tool for M&A threat nowadays. We investigated

the effects of stock splits on the stock prices and trading patterns in terms of a defense tool for

M&A threat, and found the following results.

First, from the traditional perspective, we investigated the effects of stock splits on stock

prices, volumes, and volatility. Stock splits induce positive abnormal returns consistent with

previous studies. Stock splits increase turnover and volatility.

Second, the differences of price level and market capitalization bring about different

impacts on stock splits. The splits of high-priced firms affect less on the stock prices and

turnover compared to the splits of low-priced firms. The splits of high market capitalization

firms affect less than those of low market capitalization firms. The results are same with

turnover. Third, the differences of financial characteristics of the firms bring about different impacts

on stock splits. The differences of debt ratio do not influence the stock prices after the stock

splits however, when it comes to the turnover stock splits of the firms of high debt ratio affect

more on turnover. The stock splits of the firms of low ROE, low PER affect more on stock

prices and turnover. The stock splits of the firms of high cost of capital affect more on stock

prices and turnover. The differences of growth rate of operating income do not seem to affect

the effects of stock plits on stock prices, but the stock splits of the firms of low growth rate of

sperating income affect more on turnover. Considering that the firms of high debt ratio, high

cost of capital, low ROE, low PER, and low growth rate of operating income are more likely

to be the targets of M&A, their stock splits enables the investors to more information and

liquidity.

As a result, stock splits seem to be useful as a defense tool for M&A threat. M&A target

firms can provide information to investors through stock splits and make the prices higher.

They provide liquidity, increase the trades of small investors and alleviate the threats of

M&A.