@article{jfe2017552,
author={{Adjei, Frederick and Adjei, Mavis},
title={Survival: A Motivation for Reverse Stock Splits},
journal={Journal of Finance and Economics},
volume={5},
number={5},
pages={204--210},
year={2017},
url={http://pubs.sciepub.com/jfe/5/5/2},
issn={2328-7276},
abstract={This study investigates delisting avoidance on an exchange as a motivation for reverse stock splits. I examine the different motivations for reverse splits for stocks at different pre-split price levels by dividing the sample into two groups, below or equal to $2, and above $2. Using a control sample of firms receiving delisting warnings, I find that firms on the brink of delisting, use reverse splits to extend exchange listing time. For firms with a pre-split price above $2, I find that liquidity enhancement may be the motivation for reverse splits.},
doi={10.12691/jfe-5-5-2}
publisher={Science and Education Publishing}
}