Isaac Otchere, professor of finance at the Sprott School of Business, has been awarded a SSHRC Bridge grant, one of the awards administered by Carleton University's Office for Research Initiatives and Services (CORIS) through its Research Development Grant program. Each development award has a maximum value of $10,000 and duration of one year.
Stock splits are puzzling corporate events because theoretically they do not change the value of a firm, yet investors tend to react favorably to split announcements. This study will be the first to provide a comprehensive analysis of the motivations of serial splitters. It will contribute to knowledge by providing a new motive for multiple stock splits based on the Learning and Hubris hypotheses and thus enhance our understanding of the motives for frequent stock splits. Moreover, by introducing a new and different motive for this repeated corporate event, the project will bring a new perspective to investors and academics who might be interested in frequent splitters.