Stock split and groupings in the electricity sector and their influence on traded volume, price and yield

  • Alexandre da Silva Universidade Federal do Rio Grande do Sul
  • Guilherme Kirch ∗Universidade Federal do Rio Grande do Sul, Escola de Administração


The relationship between the dividend policy and the stock split has been blurred, mainly in the information content of both, in the volume traded and in the quotations after the split. Daily data from quotation and volume traded, as well as amounts paid for dividends and stock splits, were selected from companies in the electric sector listed on the São Paulo Stock Exchange (BOVESPA). The period covered was from January 1, 2009 to July 20, 2019. The sample was divided into two groups: shares that underwent split at some point and companies where there were no split. Conclusions: 1) the split was related to an increase in the volume traded on the first day after its occurrence. 2) the share turnover of the split shares was higher on the first day and in the third month after the split. 3) the price of split shares increased in relation to the control group in the first week after split. 4) the split did not influence the yield in the first 3 years after the split. The level of yield between the groups (unfolded and unfolded) was not statistically different. Despite the small sample, some important correlations were demonstrated, which contributes to a better discussion on the theories of developments, such as the liquidity hypothesis.