Document Type
Article
Publication Date
2019
Publication Title
Journal of Financial Markets
Abstract
Weld et al. (2009) find that the average nominal U.S. stock price has been approximately $25 since the Great Depression. They report that this "nominal price fixation is primarily a U.S. or North American phenomenon." Using a larger data set from 38 countries, we show that this nominal price fixation is a global phenomenon. We exploit the introduction of the euro in 1999 to show that stock splits maintain these nominal stock price anchors. Generally, firms in countries with larger drops in nominal prices had fewer stock splits after stock prices were displayed in euros.
Recommended Citation
Bae, Kee-Hong; Bhattacharya, Utpal; Kang, Jisok; and Rhee, S. Ghon, "Nominal Stock Price Anchors: A Global Phenomenon?" (2019). 2019 Faculty Bibliography. 40.
https://collected.jcu.edu/fac_bib_2019/40
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.