The effects of stock splits on stock liquidity

2018 Fiscal Year Final Research Report

• Project/Area Number: 15K17097
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Money/ Finance
• Research Institution: Fukuyama University
• Principal Investigator: KOHSAKA Youki 福山大学, 経済学部, 講師 (60632817)
• Project Period (FY): 2015-04-01 – 2019-03-31
• Keywords: 株式分割 / 市場流動性 / 証券市場の活性化政策

Outline of Final Research Achievements

On April 2014, the trading unit of listed stocks was consolidated to 100 shares. Stock splits became the only way to reduce the minimum purchase price and more strategic importance for listed companies. In this research, we demonstrated the improving liquidity of the stock split. As a result, we found that the stock splits increased the activation of orders, the traded volume, and the turnover and decreased the bid-ask spread, and the reverse selection costs. In addition, the stock splits increased the number of total shareholders and the individual shareholders, and the share of individual shareholders. On the basis of these results, the listed companies have succeeded in improving the liquidity of stocks and further broaden the investor base, which is the main purpose of the stock split for them.

Free Research Field

金融・ファイナンス

Academic Significance and Societal Importance of the Research Achievements

株式分割実施企業が株式分割の実施を発表する場合、「当社株式の流動性の向上と投資家層の更なる拡大を図ることを目的とする」との記載されることが多い。本研究ではその実現を明らかにしており、今後株式分割を実施する企業の指針のひとつとなる成果が得られている。また、逆選択コストの減少により、最低購入金額の低下だけでなく、暗黙的な取引コストも減少していることを明らかにしており、株式分割が個人投資家への好影響も明らかにしている。