Asian Journal of Research in Business Economics and Management

Stock split is a corporate decision in which company divides face value of the equity share into more than one unit. Stock splits add no value but increases number of shares. The results in analysis suggests that reaction to stock splits is stronger and long lasting for single split companies as compared to first split and multiple split companies around the ex-split day. It also indicates that stock splits have significant impact on ARs for first split companies. The impact on AARs is strongest and most significant for multiple split companies. It implies that around ex-split day market distinguishes between first and multiple splits. More ARs are observed for multiple split companies around ex-split day.