Markku Kaustia's and Ville Rantala's paper accepted to Journal of Financial Economics
Article "Social Learning and Corporate Peer Effects" by and has been accepted for publication in the Journal of Financial Economics.
Abstract:
We find that firms are more likely to split their stock if their peer firms have recently done so. The effect is comparable to an increase of 40-50% in the share price. Splitting probability is also increasing in the announcement returns of peer splits. These results are consistent with social learning from peers’ actions and outcomes. The unique features of the setting and various further tests render alternative explanations unlikely. We find no clear benefit in following successful peer splitters. Firms are sometimes suspected to succumb to imitation, and the effect we document may be a case in point.
The paper can be downloaded at SSRN:
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Aalto computer scientists in STOC 2025
Two papers from Aalto Department of Computer Science were accepted to the Symposium on Theory of Computing (STOC).
New Academy Research Fellows and Academy Projects
A total of 44 Aalto researchers received Academy Research Fellowship and Academy Project funding from the Research Council of Finland – congratulations to all!
Aalto University's Wood Studio's future visions of Finland's most valuable wood are presented at the Finnish Forest Museum Lusto
Curly birch – the tree pressed by the devil – exhibition will be on display in Lusto until March 15, 2026.