Published Paper Details:

The stock market will witness the ups and downs of the economy. It is one of the alternative tools to measure the performance of economic conditions. Global markets react to internal events and external affairs depend on the trend. In this research, an attempt is made to evaluate the impact of corporate action like an announcement of stock splits on the shareholders' return and liquidity in both spots as well as futures. The standard event study is considered to calculate the abnormal returns if any. To find the liquidity the changes in the daily turnover of volumes of share traded are evaluated. Announcement of stock splits yields negative returns for near month, mid-month and equity spot respectively but it is observed that there is no information leakage prior to the event. The abnormal returns compared with the study are not statistically significant for pre-split and post-split data along with equity spot and futures. The volumes were in trend between -3 to +5 days and become normal reduction in the liquidity position but not statistically significant. The results of the study shows that Indian capital markets are in semi-strong form of efficient.