Economics, Econometrics and Finance
8 years ago

Indian Stock Market Soars After Bonus Issue Announcements Boost Share Prices

SSRN Electronic Journal
Technical Analysis of Bonus Issues: A Study of Indian Stock Market
Neha Rohra

Paper Summary

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Bonus issues in the Indian stock market can impact stock prices and shareholder returns. By analyzing three cases, researchers found that most bonus issues led to an increase in stock prices and returns in the short term. They used statistical tests to confirm these findings. Overall, bonus issue announcements have a positive effect on share prices, increasing returns in the immediate period after the announcement. The study also showed that the Indian stock market is efficient in semi-strong form when it comes to bonus issue announcements.