Japanese companies that conducted stock splits recently have seen their shares outperform the market, in one demonstration of why investors can’t get enough of those equities.
More than 80 Japanese firms, including chip device manufacturer Rohm and Shin-Etsu Chemical, have announced stock splits so far in 2023 — almost double the pace of a year earlier and the most for the period in five years, according to data compiled by Bloomberg.
While dividing up equity into more shares shouldn’t affect its total value, the move lowers the price per stock, making it more affordable for less cash-rich investors to buy. The added demand often boosts the share price as well, offering investors further incentives to put their money into the split equities.