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

Shimin Chen, Xiayan Huang

Research output: Other contributionCase 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 languageEnglish
Number of pages16
Publication statusPublished - 30 Jun 2019

Case number

ACC-19-617

Case normative number

ACC-19-617-CE

Case type

Field Case

Update date

12/04/2024

Supplement

For more details, please visit www.chinacases.org

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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