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Profitability of Stock Splits. Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the banking industry over an 18-month period. For a
Profitability of Stock Splits. Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the banking industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase in investment value, 4 led to a decrease in investment value, and 2 resulted in no change. Conduct a sign test to determine if it can be concluded that stock splits are beneficial for holders of bank stocks.
What are the null and alternative hypotheses?
Using = 0.05, what is your conclusion?
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