The Impact of Stock Split Announcements on Stock Prices: Evidence from Colombo Stock Exchange

• 발행기관: 한국유통과학회
• 저자명: Madhara PRABODINI Prasath Manjula RATHNASINGHA
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』The Journal of Asian Finance, Economics, and Business Vol. 9 No.5, 41~51쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.05.30

영문 초록

The research looks into the impact of stock split announcements on stock prices and market efficiency in the Colombo Stock Exchange (CSE). This research uses a sample of 26 stock split announcements that occurred between 2020 and June 2021. According to the Global Industry Classification Standards, the stock split announcements covered in the study pertain to 26 businesses and 9 industries (GICS). To obtain the results, the usual event research methodology is used. The findings demonstrate significant average abnormal returns of 15.01 percent on the day the stock split news is made public and abnormal returns of 4.11 percent and -4.05 percent one day before and after the stock split announcement date, respectively. The study’s findings revealed significant positive abnormal returns one day before the disclosure date, indicating information leakage, and significant negative abnormal returns the next day after the announcement date, indicating CSE informational efficiency. Because stock prices adapt so quickly to public information, these findings support the semi-strong form efficient market hypothesis, which states that investors cannot gain an abnormal return by trading in stocks on the day of the stock split announcement.

목차

1. Introduction

2. Literature Review

3. Data and Methodology

4. Empirical Results and Discussion

5. Conclusion

References

키워드

Stock Split Capital Market Efficiency Abnormal Return Event Study Colombo Stock Exchange