Abstract
A capital market in which stock prices fully reflect all available information can be termed as informationally efficient market. A number of studies have empirically tested the response of security prices to the release of different information. The objective of this study is to find evidence of semi-strong form of efficiency in the Indian stock market. The paper examines the share price reaction to bonus issue announcements around the announcement date by using the event study methodology. Bonus announcements of companies listed on the Bombay Stock Exchange in 2010 and 2011 is taken as a sample for the study. The abnormal returns are calculated using the Market Model and t-tests is conducted to test the significance.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.