The Market Reaction to Stock Splits – Evidence from the Warsaw Stock Exchange

Theoretical background: A share split is an operation that increases the total number of shares. The a technical and should not affect market value company. shareholding structure company remains unchanged when shares are split. However, studies around world show occurrence abnormal returns. Purpose article: article analyses splits based on data from 2009 to 2021. aim study analyse cumulative average returns (CAARs) in periods preceding stock Warsaw Stock Exchange (WSE). CAARs analysed different research variants. influence situation frequency amount examined. Research methods: was carried out using event analysis. Market-Adjusted Return Model used determine were calculated for each window. statistical significance verified by parametric t test non-parametric Corrado rank test. Main findings: showed statistically significant positive 30-day period hypothesis multiple cause particularly high companies has been confirmed. reaction depending state did allow unambiguous conclusions case WSE Index (WIG) increased. Weaker planned worse conditions