Corporate actions and the manipulation of retail investors in China: An analysis of stock splits

• 成果类型: Article
• 署名作者: Titman, Sheridan; Wei, Chishen; Zhao, Bin
• 署名单位: University of Texas System; University of Texas Austin; Singapore Management University; Thammasat University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.09.018
• 发表日期: 2022
• 页码: 762-787
• 关键词: Stock price manipulation; STOCK SPLITS; RETAIL INVESTORS; CHINA

摘要

We identify a group of suspicious firms that use stock splits, perhaps along with other activities, to artificially inflate their share prices. Following the initiation of suspicious splits, share prices temporarily increase, and subsequently decline below their presplit levels. Using account level data, we find that small retail investors acquire shares in firms initiating suspicious splits, while more sophisticated investors accumulate positions before suspicious split announcements and sell in the postsplit period. We also find that insiders sell large blocks of shares and obtain loans using company stock as collateral around the initiation of suspicious splits.(c) 2021 Elsevier B.V. All rights reserved.