Catering Through Nominal Share Prices
By Malcolm P. Baker, Robin Greenwood, Jeffrey Wurgler. 2009
212 citations recorded by the source corpus.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/c19508871701b93a56e717d94d3d6bbb33277fc6
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
- Byoung-Hyoun Hwang
- Clifton Green
- Baolian Wang
- Justin Birru
- Claire Célérier
- Boris Vallée
- Malcolm P. Baker
- Jeffrey Wurgler
In Finance
- Byoung-Hyoun Hwang
- Clifton Green
- Justin Birru
- Baolian Wang
- Boris Vallée
- Claire Célérier
- Malcolm P. Baker
- Jeffrey Wurgler
Citations in the corpus
- The Role of Anchoring Bias in the Equity Market: Evidence from Analysts’ Earnings Forecasts and Stock Returns (2012, unknown): “Baker, Greenwood, and Wurgler (2009) suggest that managers split shares driven by “small-cap premiums” to cater to investors’ preference.”
- Behavioral Corporate Finance: An Updated Survey (2011, unknown): “For example, suppose that noise traders coarsely categorize low-nominal-price firms, all else equal, as growth firms (Baker et al., 2009).”
- Nominal price illusion (2016, background): “…have higher market valuation ratios (lower B/M), and higher past performance (both Rt-12,t-1 and 24 Recent papers by Green and Hwang (2009) and Baker, Greenwood, and Wurgler (2009) also use stock splits as an instrument to test behavioral theories, arguing that the lack of a relationship…”
- Price-Based Return Comovement (2009, background): “The fact that the shift in comovement is stronger for firms with large market capitalizations suggests large firms may be trying to appear small by splitting their stocks, a suggested by Baker, Greenwood, and Wurgler (2008).”
- Catering to Investors Through Security Design: Headline Rate and Complexity (2017, background): “First, our paper contributes to the literature on reaching for yield (Rajan, 2011; Yellen, 2011; Becker and Ivashina, 2015; Hanson and Stein, 2015) and issuers catering to investors (Baker et al., 2009; Baker and Wurgler, 2002; Greenwood et al., 2010).”
- Capital Market-Driven Corporate Finance (2009, background): “More recently, Baker et al. (2009b) find that firms are more likely to split their shares when a similar premium on small or low-priced stocks is high.”