The primary objective is to examine the signaling impact of information of stock split announcement on share prices in Indian stock

market. Based on the information announcement of Stock Splits on the Indian stock market during the period April 2002 to March 2009. An event study methodology is conducted and using 61-days event Window (pre announcement day-10 to post announcement day +50, 0 day is announcement day (10+50)) for Weak form and 81-days event Window (day-40 to day +40, 0 day is announcement day (40+40)) for Semi-strong form and 231-days event Window (day-220 to day 10, 0 days is announcement day (220+10)) for Strong form(the event window estimated approximately). The study finds under Semi-strong form efficiency stock split announcement reflect in the share prices and investor can gain average abnormal returns in the post announcement period and the investor cannot gain in pre announcement period i. e. positive Cumulative Average Abnormal Reruns (CAAR) in the post announcement period of Stock split and almost negative CAAR in the pre announcement period it is found through CAAR that stock split announcement reflects on the stock prices and conducted that market is efficient in Semi-strong form.

http://www.indianjournals.com/ijor.aspx?target=ijor:ijbemr&volume=2&issue=12&article=003