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VOL. 2, ISSUE 1 (2026)
Stock split and its effect on stock returns – A case study on selected companies in India
Authors
Dr. Gundeti Sunitha
Abstract
The stock split is one of the corporate actions which increases the
liquidity and marketability of the securities. This stock split is one of the
stock events should be observed by the investors for investing of their funds
in short period. In this regard above study is an empirical study examines the
impact of stock split announcement and stock split event on the stock price
behaviour. The research variables in the study included share prices during five
day pre and post announcement and event of stock split of selected companies
during 2020 and 2022. The selected companies are KBC global ltd and Tirupati
Forge Ltd.These are selected randomly from NSE stock split companies during the
study period. The study used T- test to measure the impact of stock split
during pre and post announcement and event on share price returns of selected
companies. The study measured the returns in absolute figures in rupees. The
study observed the mixed result in the stock price behaviour in selected
companies after their stock split. It means that some companies return are
positive and negative during pre and post stock split movement during pre and
post five days from stock split announcement and stock split event.
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Pages:278-282
How to cite this article:
Dr. Gundeti Sunitha "Stock split and its effect on stock returns – A case study on selected companies in India". International Journal of Applied Review
, Vol 2, Issue 1, 2026, Pages 278-282
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