High-Ratio Stock Splits: Profit Cultural & Creative Group vs. Wolwo Bio-Pharmaceutical

Shimin Chen; Xiayan Huang

High-Ratio Stock Splits: Profit Cultural & Creative Group vs. Wolwo Bio-Pharmaceutical

Research output: Other contribution › Case Studies

Abstract

Unlike the US market, which focuses on cash dividends, the Chinese capital market is keen on stock splits. Large stock splits are often accompanied by a sharp rise and fall in stock prices, drawing the attention of regulators. In the first half of 2018, PROFIT C&C and WOLW PHARMA split their stock 1.8- for- 1. What is the motivation for listed companies to launch a large stock splits scheme? What are the reasons for the stock price movements of the two companies after the large stock dividends?

Original language	English
Number of pages	16
Publication status	Published - 30 Jun 2019

Case number

ACC-19-617

Case normative number

ACC-19-617-CE

Case type

Field Case

Update date

12/04/2024

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Published by

China Europe International Business School

Keywords

financial performance
company market value
High Sending Turn
share price
large shareholders' shares selling

Case studies discipline

Accounting
Finance

Case studies industry

Arts, Entertainment, Sports and Recreation
Health Care Services

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KW - financial performance

KW - company market value

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KW - share price

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High-Ratio Stock Splits: Profit Cultural & Creative Group vs. Wolwo Bio-Pharmaceutical

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