Abstract
Merton (1987) proposes that an increase in a firm's investor base increases the firm's value. In Japan, companies can reduce their stock's minimum trading unit -the number of shares in a "round lot" - which facilitates trading in the stock by small investors. We find that a reduction in the minimum trading unit greatly increases a firm's base of individual investors and its stock liquidity, and is associated with a significant increase in the stock price. Further, the stock price appreciation is positively related to an increase in the number of shareholders.
| Original language | English |
|---|---|
| Pages (from-to) | 1169-1184 |
| Number of pages | 16 |
| Journal | Journal of Finance |
| Volume | 54 |
| Issue number | 3 |
| Publication status | Published - 1999 Jun |
| Externally published | Yes |
Fingerprint
ASJC Scopus subject areas
- Accounting
- Economics and Econometrics
- Finance
Cite this
Number of shareholders and stock prices : Evidence from Japan. / Amihud, Yakov; Mendelson, Haim; Uno, Jun.
In: Journal of Finance, Vol. 54, No. 3, 06.1999, p. 1169-1184.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Number of shareholders and stock prices
T2 - Evidence from Japan
AU - Amihud, Yakov
AU - Mendelson, Haim
AU - Uno, Jun
PY - 1999/6
Y1 - 1999/6
N2 - Merton (1987) proposes that an increase in a firm's investor base increases the firm's value. In Japan, companies can reduce their stock's minimum trading unit -the number of shares in a "round lot" - which facilitates trading in the stock by small investors. We find that a reduction in the minimum trading unit greatly increases a firm's base of individual investors and its stock liquidity, and is associated with a significant increase in the stock price. Further, the stock price appreciation is positively related to an increase in the number of shareholders.
AB - Merton (1987) proposes that an increase in a firm's investor base increases the firm's value. In Japan, companies can reduce their stock's minimum trading unit -the number of shares in a "round lot" - which facilitates trading in the stock by small investors. We find that a reduction in the minimum trading unit greatly increases a firm's base of individual investors and its stock liquidity, and is associated with a significant increase in the stock price. Further, the stock price appreciation is positively related to an increase in the number of shareholders.
UR - http://www.scopus.com/inward/record.url?scp=0040628318&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0040628318&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:0040628318
VL - 54
SP - 1169
EP - 1184
JO - Journal of Finance
JF - Journal of Finance
SN - 0022-1082
IS - 3
ER -