5. Ikenberry et al. (JFQA 1996) document that firms have positive CAPM alphas for at least...

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5. Ikenberry et al. (JFQA 1996) document that firms have positive CAPM alphas for at least a year after they perform the stock split. What do you expect to happen to recent splits at several earnings announcements after the split? Do you expect this effect to be stronger or weaker for the splits performed by large companies and the splits performed by companies with high institutional ownership? 5. Ikenberry et al. (JFQA 1996) document that firms have positive CAPM alphas for at least a year after they perform the stock split. What do you expect to happen to recent splits at several earnings announcements after the split? Do you expect this effect to be stronger or weaker for the splits performed by large companies and the splits performed by companies with high institutional ownership?

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Answer The study by Ikenberry et al 1996 suggests that firms have positive CAPM alphas for at least ... View the full answer