Event Study Methodology for Stock Split Announcements
Author(s): 1. Mr.Vijayashekaranayaka. J. R, 2. Dr. Veena. M.
Authors Affiliations:
- Research Scholar, Department of Studies and Research in Commerce, Vijayanagara Sri Krishnadevaraya University, Ballari, Karnataka-583104.
- Assistant Professor & Research Supervisor, P.G. Department of Studies and Research in Commerce, Vijayanagara Sri Krishnadevaraya University, Ballari, Karnataka-583104.
The event study methodology is a standard methodology used to study the behaviour of stock prices around the specific corporate events like announcement of stock splits, bonus issues, right shares, dividend, mergers and acquisitions, changes in key managerial positions and changes in accounting rule as stated by Binder (1998) and Anjali Gupta (2016). This methodology first used by Fama et al (1969) to analyse impact of corporate events and most of early event study works are focused on examination of impact on share prices behavior in relating to corporate announcements and event study has become a standard methodology in financial economic research in order to measure and test the effect of particular event on stock prices and other aspects like trading volume, volatility, bid-ask-spread, abnormal returns, impacts on shareholders wealth and shareholding pattern . This paper discusses in detail about the event study methodology with specific reference to Market model, Market adjusted model and Mean adjusted model.
Mr.Vijayashekaranayaka. J. R, Dr. Veena. M. (2025); “Event Study Methodology for Stock Split Announcements”, International Journal for Innovative Research in Multidisciplinary Field, Vol-11, Issue-1, Pp.29-33, DOIs:10.2015/IJIRMF/202501004 Available on – https://www.ijirmf.com/
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