Please use this identifier to cite or link to this item:
Author(s): Pereira, J.
Cutelo, T.
Date: 2013
Title: Tiny prices in a tiny market: evidence from Portugal on optimal share prices
Volume: 19
Number: 3
Pages: 579-598
ISSN: 1354-7798
Keywords: Price per share
Stock split
Abstract: The Portuguese stock market provides a natural experimental area to analyse theories of optimal price per share. Its characteristics suggest that prices should be very low. Using a sample of 20 stocks from the main Portuguese Stock Index from 1999 to 2010, we observe that Portuguese corporations indeed seek extremely low prices per share through stock splits and similar actions. However, we find that low-price stocks are actually less liquid than high-price stocks. Furthermore, low-price stocks trade at lower valuation ratios. Our results do not support any of the existing theories on optimal price per share and therefore add to the nominal share price puzzle.
Peerreviewed: Sim
Access type: Embargoed Access
Appears in Collections:BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica

Files in This Item:
File Description SizeFormat 
  Restricted Access
147,03 kBAdobe PDFView/Open Request a copy

FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpaceOrkut
Formato BibTex mendeley Endnote Logotipo do DeGóis Logotipo do Orcid 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.