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THE NOMINATING, COMPENSATION AND STOCK OPTION COMMITTEE OF HEALTHCARE SERVICES GROUP, INC.

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10.10.2023

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We first examine whether the likelihood of acquisition affects the firm’s decision to split, aftercontrolling for price run-ups and other factors that may influence a firm’s stock-split decision.Acquiring firms and their industry-size-price matching firms are pooled for all regressions.9Werun probit regressions of the split dummy variable (equals one if there is a stock split from month−6tomonth −1, and zero otherwise) on the M&A dummy variable (equals one if the firm isan acquirer, and zero otherwise) and other control variables. If the acquirer intentionally splitsits stock in anticipation of an acquisition announcement, we expect the coefficient on the M&Adummy to be...
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THE NOMINATING, COMPENSATION AND STOCK OPTION COMMITTEE OF HEALTHCARE SERVICES GROUP, INC.

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