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Corporate Actions and Share Price

Corporate Actions and Share Price

Paperback

Management

ISBN10: 3639247558
ISBN13: 9783639247558
Publisher: Blues Kids Of Amer
Published: Apr 7 2010
Pages: 124
Weight: 0.42
Height: 0.29 Width: 6.00 Depth: 9.00
Language: English
Distributions of dividend and interest, issue of rights and bonus shares, issue of fresh securities, share splits, consolidations, hive-off, warrants, mergers, de-mergers, acquisitions etc. made by the companies are called corporate actions. Fluctuations in the share prices may due to many reasons including corporate actions. An attempt is made in this study to see whether corporate actions influence the share price or not. Eighty companies from various industries listed in the BSE are considered. Twelve corporate actions from the year 2002 to 2007 are the basis for making the analysis of the study. Wilcoxon Matched Pairs Test and two tailed test are applied. Both primary and secondary sources were used to get data required for the study. Results show that there is change in the share prices after corporate actions. Corporate Actions influence the shareholders on the next day after the announcements. The evidence of this study also indicates that share prices are too sensitive to corporate announcements.

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