Full metadata record
| DC Field | Value | Language |
|---|---|---|
| dc.contributor | Faculty of Business | en_US |
| dc.creator | Kei, Chi Wing Brian | - |
| dc.identifier.uri | https://theses.lib.polyu.edu.hk/handle/200/10583 | - |
| dc.language | English | en_US |
| dc.publisher | Hong Kong Polytechnic University | en_US |
| dc.rights | All rights reserved | en_US |
| dc.title | A study of reverse stock split in downward price trading syndrome of Hong Kong stock market | en_US |
| dcterms.abstract | China investors have been complaining about the so-called "Scam Stocks" in the Hong Kong stock market in recent years. The phenomenon is labeled as "Downward Price Trading Syndrome". This thesis provides an empirical study to validate the accusation. I use the trading data of the Hong Kong stock market from 2006 to 2018 and examine the effects of reverse stock splits, which is labeled as wicked action of "Scam Stocks" by many retail speculators, on stock returns compared with a reference portfolio of non-split firms. I find that the reverse stock split share prices underperform the non-split stocks by 4.58% on a two-year buy-and-hold abnormal stock return due to the risk and turnover effects. Moreover, should the target share price post-event be lower than HK$0.50, the results in a more adverse effect of 26.636% on the stock return than the reverse stock split of after-split target price above HK$0.50. The number of institutional shareholders contributes positively to the performance of 6.13% on the stock return for the benefit of their prudent investment. I also find the synchronicity of insiders' shareholdings and the stock returns of reverse stock split stocks. The reverse stock split is observed as a key factor to the poor stock performance in "Downward Price Trading Syndrome". | en_US |
| dcterms.extent | xi, 110 pages : color illustrations | en_US |
| dcterms.isPartOf | PolyU Electronic Theses | en_US |
| dcterms.issued | 2020 | en_US |
| dcterms.educationalLevel | D.B.A. | en_US |
| dcterms.educationalLevel | All Doctorate | en_US |
| dcterms.LCSH | Stock exchanges -- China -- Hong Kong | en_US |
| dcterms.LCSH | Stocks -- Prices -- China -- Hong Kong | en_US |
| dcterms.LCSH | Hong Kong Polytechnic University -- Dissertations | en_US |
| dcterms.accessRights | restricted access | en_US |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 5012.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.49 MB | Adobe PDF | View/Open |
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