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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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Dr. Daniel Lazar holds M.Com, M. Phil, Ph. D, MBA and AICWA degrees. His area of specialization and research include financial management, corporate finance, microfinance, international finance and stock market. He is a best researcher award winner.He has published 19 research articles and published six books.

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