I think there's a fundamental misunderstanding as to what capitalism is. Capitalism is a system in which the capital decides what gets done, within limits. If

I think there's a fundamental misunderstanding as to what capitalism is. Capitalism is a system in which the capital decides what gets done, within limits. If the market really thinks the company is better off split then that's what you as a company should do - the capital has spoken. If it's a bad idea then maybe next time the capital will take the opposite position. Same with bankruptcies, they're usually healthy. If your bonds trade at 50c on the dollar with an inverted yield curve you should file for it. Or the opposite - companies enjoying super low cost of capital (prime example - Tesla), if the capital thinks the company is so great the management should be trying to sell more shares and lock in some of that capital that's chasing it, assuming it can deploy additional capital in any meaningful fashion. And (existing or potential) competition should take notice. In short, the capital tells you what to do. Even the Fed is kind of subject to the market, every time they stay behind or ahead of the curve (like when the yield curve inversion happens) there are usually consequences down the line for such trespasses against the consensus.