Social learning and corporate peer effects

• 成果类型: Article
• 署名作者: Kaustia, Markku; Rantala, Ville
• 署名单位: Aalto University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.06.006
• 发表日期: 2015
• 页码: 653-669
• 关键词: Peer effect; STOCK SPLITS; social learning

摘要

We find that firms are more likely to split their stock if their peer firms have recently done so. The effect is comparable to an increase of 40-50% in the share price. Splitting probability is also increasing in the announcement returns of peer splits. These results are consistent with social learning from peers' actions and outcomes. The unique features of the setting and various further tests render alternative explanations unlikely. We find no clear benefit in following successful peer splitters. Firms are sometimes suspected to succumb to imitation, and the effect we show could be a case in point. (C) 2015 Elsevier B.V. All rights reserved.