Indonesia Conference Directory

In 2011, the Syrian regulator has issued article No. 91 of the Legislative Decree No. 29/ 14th Feb. 2011“The nominal value per share shall be set at 100 Syrian Pounds only for all public companies, including banks and insurance companies, shall adjust their status within two years from the date of the entry into force of this Legislative Decree”. The purpose of this paper is to investigate the effects of this mandatory stock splits (regardless any split ratio) which is requested by regulators on market reaction in Damascus stock exchange market. According to official announcements, the main reason for this regulation is to set price range and increase the market liquidity. To examine the implications of the stock splits, all listed firms are included in our sample for the period 2011-2014. The methodology used is traditional event study for measuring the market reaction.