Abstract

Corporate actions are activities that have a material impact on an organization. Basically, they include stock splits, bonus issues, rights issues, and many more. These activities also have a significant impact on the company’s share value. “Corporate Actions: A Case of Walmart and Amazon” deals with corporate actions such as stock split, share repurchase, and dividend distribution announced by Walmart Inc. (Walmart) and Amazon.com, Inc. (Amazon). The case study details the situations that spurred these companies to initiate these activities, what their outcomes were, and how these activities helped shareholders. The case highlights the background of Walmart and Amazon and the various corporate actions undertaken by them, such as stock splits, share repurchases, and dividend distribution. The case study helps learners understand the nitty-gritty of various corporate actions and why corporate managers opt for a particular action.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand various corporate actions taken by a company
• Understand why companies opt for share repurchase and stock split
• Examine how a company shares profit with its stakeholders

Keywords

Share repurchase; Buyback; Stock split; Dividend; Free cash flow; FCF; Walmart; Amazon