Researchers have always questioned the rationale for stock splits. Some have attributed the existence of stock split to a manager’s desire of increasing the liquidity of the stock. Others have argued that the split is a mechanism by which managers can signal to the market the expectations...

Event study has remained one of the highly pursued areas of research in corporate finance. Studies reported in this realm empirically show that the economic model or the capital asset pricing model (CAPM) yields relatively better results with respect to the abnormal return of stocks preceded by...