Analysis of the influence of reverse stock splits on the shares quotations on the Warsaw Stock Exchange

Roman Asyngier

Abstract


Reverse stock split is the technical operation, which brings no additional value to the company or shareholders. In theory, its influence on the stock quotation should be indifferent. However, the few studies conducted in the world are showing the negative impact of the reverse split process on stock prices. The Polish market hasn't been the subject of analysis in this respect so far. The goal of the article are the literature studies about the reverse split effect as well as the initiation of research about the influence of re-split on the courses and volume of shares on the Warsaw Stock Exchange. The analysis undertaken in this article will be continued at different levels in the future. The article is a part of more extensive research concerning the irregularities of the functioning of the Polish capital market.

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DOI: http://dx.doi.org/10.17951/h.2014.48.2.7
Date of publication: 2015-05-23 20:20:33
Date of submission: 2015-05-23 19:54:14


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