Impact of Corporate Action (Different Stock Split Ratios) on Stock Price in India

This article tries to explain the impact of corporate action (Stock splits) on stock price in India, which ex-splits date in the year 2017. This study includes twenty five stocks from different industries and different stock split ratios. To understand the price reactions to stock splits researcher calculated abnormal returns, average abnormal returns and cumulative abnormal returns around ex-splits date (before & after ex-splits issue date) by using event study and to know the significance of abnormal returns researcher used student t test. Researcher has segregated twenty five stocks into four stratification's based on stock split ratios to investigate investor reaction to different stock split ratios