Impact of Selected Stock Splits on Stock Performance in India


  • Radha Vyas D. R. Patel & R. B. Patel Commerce College & Bhaniben C. Patel BBA College, Bharthana (Vesu), Surat, India



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.


Download data is not yet available.


Chavali, K., & Zahid, Z. (2011). Impact of stock splits on stock price performance of selected companies in Indian context. Afro-Asian Journal of Finance and Accounting, 2(3), 270-282.

Fama, E. F. (1991). Efficient capital markets II.The Journal of Finance, 46(5), 1575–1617.

Fama, E. F.,Fisher, L., Jensen, M., & Roll, R. (1969). The adjustment of stock prices to new information. International Economic Review, 10(1).

Gupta, A., & Arya, P. K. (2020). Impact of splits on stock splits ratios around announcement day: empirical evidence from India. Investment Management & Financial Innovations, 17(3), 345.

Mishra, A. K. (2007). The market reaction to stock splits—Evidence from India. International Journal of Theoretical and Applied Finance, 10(02), 251-271.

Pal, P. & Parvathy, V.K. (2021). Stock Splits Announcement Effect on Share Prices: Evidence from Nifty 100 Companies. CLEAR International Journal of Research in Commerce & Management, 12(3), 22–26.

Rohit, B., Pinto, P., & Bolar, S. (2016). Impact of stock splits and rights issue announcements on market price: Evidence from India. Drishtikon: A Management Journal, 7(2), 1-16.



How to Cite

Radha Vyas. (2021). Impact of Selected Stock Splits on Stock Performance in India. Advancement in Management and Technology (AMT) , 2(1), 38-43.