Corporate announcements impact stock returns, shareholders' value confirmed in India.
The study looked at how the stock market reacts to announcements about bonuses, stock splits, and rights issues in India. They used a method called event study to see if there were any unusual changes in stock prices around these announcements. The results showed that there was a positive impact on stock prices when bonuses were announced, but negative impacts for stock splits and rights issues. This suggests that these announcements do affect stock prices and the value of shareholders' investments.