*Professor, Department of Management Studies, M.S. Ramaiah Institute of Technology, Vidya Soudha, MSR Nagar, Mathikere, Bangalore-560054
**MBA Student, Department of Management Studies, M.S. Ramaiah Institute of Technology, Vidya Soudha, MSR Nagar, Mathikere, Bangalore-560054
Online published on 15 March, 2019.
The study is about the stock split and analysing the market condition or reaction to the stock split announcement by the companies during the period of study. It also studies about the abnormal returns around the stock split announcement that is the window period of +12 and -12 days of the stock split date and the study is based on the stock market data of 2 years 2014 to 2016. The implication of the study is confined to the industries in which the selected companies are operated the cumulative average abnormal return test(CAAR) were used to find that market reaction is positive or negative abnormal returns during the stock split.
Stock split, abnormal return, window period, CAAR
