Advanced Search
MyIDEAS: Login to save this article or follow this journal

Impact of stock splits on stock price performance of selected companies in Indian context

Contents:

Author Info

  • Kavita Chavali
  • Zaiby Zahid
Registered author(s):

    Abstract

    This paper aims to investigate the impact of stock splits on the stock price performance of selected companies in the Indian stock market. A purposive sampling method was employed, and a sample of 20 stock splits announced by BSE-listed companies from the beginning of April 2006 to the end of September 2008 was selected pertaining to different sectors. The study employs the market model-event study methodology with an event window of 81 days (40 days prior to split and 40 days post-split) and split announcement date (An date, t0) as the event date, to examine the market reaction. The findings indicate that the market is found to react positively with significantly positive average abnormal results on t0 and very near to the An date especially evident during t−1 to t+1. The empirical results find the semi-strong form of efficient market hypothesis to be true in the Indian context.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.inderscience.com/link.php?id=41633
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Afro-Asian J. of Finance and Accounting.

    Volume (Year): 2 (2011)
    Issue (Month): 3 ()
    Pages: 270-282

    as in new window
    Handle: RePEc:ids:afasfa:v:2:y:2011:i:3:p:270-282

    Contact details of provider:
    Web page: http://www.inderscience.com/browse/index.php?journalID=214

    Related research

    Keywords: stock splits; market model; event study; stock returns; India; stock price performance.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:2:y:2011:i:3:p:270-282. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.