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Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM39094
Volume:
8 |
11 |
Nov 2024
Pages:
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
This study aims to analyze the impact of stock splits on stock prices which serves as an indicator of liquidity, for banking companies listed on the NSE in India. An event study methodology was employed to examine the average stock prices for a period of five days before and five days after the stock split event. The study utilizes secondary data collected through purposive sampling techniques. Key data points include the stock split announcement date (treated as the event date, t+2), daily closing stock prices, daily trading volumes, the total shares outstanding, and the daily Nifty Bank Index, depending on the exchange. The sample consists of banking companies listed on the NSE and BSE that underwent stock splits between 2013 and 2024. The results indicate no significant changes in stock prices before and after the stock split, suggesting limited immediate impact on the stock performance for the observed companies.
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Publication Date
11/23/2024
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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