Impact of stock splits on stock price performance of selected companies in Indian context
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.
Volume (Year): 2 (2011)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID=214|
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: (Darren Simpson)
If references are entirely missing, you can add them using this form.