Analysing the Likelihood of and Market Reaction to Reverse Stock Splits in India
Reena Nayyar,
Sanjay Dhamija,
Chhavi Mehta
Abstract:The study analysed the factors that motivated Indian companies to pursue reverse stock splits strategy. The article also aimed at examining the market reaction around the announcement and effective dates of reverse stock splits. Analysing the reverse stock splits pursued by Indian companies during the period 2002–2022, it was found that poor growth opportunities in the past were the main reasons for Indian companies pursuing reverse stock splits. Further, reverse stock splits were chosen by the companies whose… Show more
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