EVENT STUDY ANALYSIS FOR STOCK SPLITS
XYZ Firm
t - 3 Days t - 2 Days t - 1 Days t = 0 Days t + 1 Days t + 2 Days t + 3 Days
12/31/1990 Price Movements $8.38 $8.50 $8.50 $8.50 $10.00 $9.50 $9.75
12/31/1990 % Price Change 0% 1.0% 0.0% 0.0% 18.0% -5.0% 0%
ZZZ Co.
t - 3 Days t - 2 Days t - 1 Days t = 0 Days t + 1 Days t + 2 Days t + 3 Days
11/30/1991 Price Movement $12.50 $12.00 $11.75 $14.25 $14.00 $14.50 $14.00
11/30/1991 % Price Change 0.00 -4% -2% 21% -2% 4% 0.00
XYZ Firm
$10.50 20%
$10.00 15%
Percentage Change
Price (In Dollars)
$9.50 10%
Price Movements
$9.00 5%
% Price Change
$8.50 0%
$8.00 -5%
$7.50 -10%
t - 3 Days t - 2 Days t - 1 Days t=0 t+1 t+2 t+3
Days Days Days Days
ZZZ Co.
$16.00 0.25
$14.00 0.20
$12.00
Percentage change
0.15
Price (In Dollars)
$10.00
0.10 Price Movement
$8.00
0.05 % Price Change
$6.00
0.00
$4.00
$2.00 -0.05
$0.00 -0.10
t - 3 Days t - 2 Days t - 1 Days t = 0 Days t + 1 Days t + 2 Days t + 3 Days
EVENT STUDY ANALYSIS FOR STOCK SPLITS
Price Movements
Company t - 3 price t - 2 price t - 1 price t = 0 price t + 1 price
12/30/1990 XYZ Firm 8.38 8.50 8.50 8.50 10.00
11/30/1991 ZZZ Co. 12.50 12.00 11.75 14.25 14.00
% Price Change
t - 2 change t - 1 change t = 0 change t + 1 change
12/31/1990 XYZ Firm 0.00 1% 0% 0% 18%
11/30/1991 ZZZ Co. 0.00 -4% -2% 21% -2%
XYZ Firm
t - 3 price t - 2 price t - 1 price t = 0 price t + 1 price
12/31/1990 Price Movements 8.38 8.50 8.50 8.50 10.00
12/31/1990 Price Change 0% 1.0% 0.0% 0.0% 18.0%
ZZZ Co.
t - 3 price t - 2 price t - 1 price t = 0 price t + 1 price
11/30/1991 Price Movement 12.50 12.00 11.75 14.25 14.00
11/30/1991 Price Change 0.00 -4% -2% 21% -2%
XYZ Firm
$10.50 20%
ZZZ Co.
$10.00 15%
$16.00 0.25 Percentage Change
$9.50 10%
Price (In Dollars) Dollars)
$14.00 0.20
$12.00
$9.00 5%
0.15
Price (In
Percentage change
$10.00
$8.50 0.10 0%
Price Movement
$8.00
% Price Change
0.05
$8.00
$6.00 XYZ Firm -5%
0.00
$10.50 $4.00
$7.50 20% -10%
t-3 t-2 t-1 t=0 t+1 t+2 t+3
$2.00 Days Days Days Days Days Days-0.05
Days
$10.00 15%
$10.00 15%
$0.00 -0.10
Percentage Change
$9.50 t-3 t-2 t-1 t=0 t+1 t+2 t+3 10%
Price (In Dollars)
Days Days Days Days Days Days Days
Price Movements
$9.00 5%
% Price Change
$8.50 0%
$8.00 -5%
$7.50 -10%
t-3 t-2 t-1 t=0 t+1 t+2 t+3
Days Days Days Days Days Days Days
t + 2 price t + 3 price
9.50 9.75
14.50 14.00
t + 2 change
-5% 0.00 - 1/4
4% 0.00 0
t + 2 price t + 3 price
9.50 9.75
-5.0% 0%
t + 2 price t + 3 price
14.50 14.00
4% 0.00
ZZZ Co.
$16.00 0.25
$14.00 0.20
$12.00
0.15 Percentage change
Price (In Dollars)
$10.00
0.10
$8.00
Price Movements 0.05
% Price Change $6.00
0.00
$4.00
Price Movement
$2.00 -0.05
% Price Change
$0.00 -0.10
t-3 t-2 t-1 t=0 t+1 t+2 t+3
Days Days Days Days Days Days Days
Price Movements
% Price Change
Price Movement
% Price Change