Impact of Selected Stock Splits on Stock Performance in India
Keywords:Stock Split, Market Model, Event Study, Event window, Stock price
Normally, investors perceive stock splits announcement in positive way. Hence, it becomes interesting phenomenon for many researchers. Thus, here, researcher has tried to study impact of selected stock splits on stock price performance in Indian stock market with reference to cumulative abnormal returns (CAR) and cumulative average abnormal returns (CAAR) by selecting 10 stock splits announced by BSE listed companies from different sectors during January 2021 to May 2021 period. The market model-event study methodology was used for the analysis. An event window of 81 days (t-40 to t+40) and estimation period of 30 days prior to stock splits announcements were used to investigate the market reaction. The findings of the analysis support the semi-strong form of efficient market hypothesis in Indian stock market.
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