Market Reaction to Bonus Announcement in Post Global Financial Crisis Era: Evidence from India

  • Mayank Harshvadan Joshipura School of Business Management, NMIMS University, Mumbai, India
  • Nusrathunnisa Unnisa


This study examines the stock price reaction contiguous with bonus announcement surrounding its announcement and effective day in post global financial crisis period. Sample of 74 bonus announcements from the constituents of Indian CNX 500 companies that announced bonus have been used for the period between 2008 through 2012. The standard event study methodology has been used. According to semi-strong form of efficient market hypothesis any information content associated with bonus announcement must be reflected in form of abnormal return on announcement day itself. However, several studies, report positive abnormal returns associated with bonus surrounding announcement as well as effective days. This study reports statistically significant positive abnormal return surrounding announcement as well as effective day and it is consistent with earlier studies.

Author Biography

Mayank Harshvadan Joshipura, School of Business Management, NMIMS University, Mumbai, India

Dr. Mayank Joshipura is a Professor and Chairperson, MBA Capital markets at School of Business, NMIMS University, Mumbai. Dr. Joshipura, an engineering graduate, holds Ph.D. and MBA degrees in Finance. He attended and successfully completed a certificate programme on “Creating value through financial management” from Wharton Business School, USA.

Dr. Joshipura has one and half decade of experience in management education and consulting. He has worked with several reputed institutes prior to joining NMIMS including S P Jain Institute of Management & Research, Mumbai, where he was a faculty and Head of the Finance area. He has also been a visiting faculty to many reputed business schools such as IIML, SPJIMR, IIM-Raipur, MICA to name a few. He was a visiting faculty to SPJCM Singapore in the past. He has also taught students of Singapore Management University and Tel Aviv University, Israel. He has been a regular faculty for UGC refresher courses for management and commerce faculty.

Dr.Joshpura has published several papers in reputed national and international journals. He has been a reviewer for number of international journals. He has also chaired sessions at many international and national conferences. He has published cases with reputed case clearing and publishing houses such as Richard Ivey Business School, Emerald Emerging Market Case Studies and ECCH. He has been awarded with first prize for the best paper at NICOM 2010.  He has completed two funded research projects for National Stock Exchange of India. He also has supervised two funded research projects under NSE’s student’s research project initiative.

Dr.Joshipura has designed and conducted several training prorammes and MDP sessons for many reputed organizations such as SBI, PNB, BSE, ACC, Zydus Cadila, Sun pharma, IFFCO, GSPC, Gujarat Gas, V-Trans and many more.

Dr. Joshipura has keen interest in the areas of Derivatives, Portfolio management, Quantitative applications in finance, financial risk management and corporate finance. He is currently pursuing research in the areas of Market efficiency, portfolio strategies, innovative financing as a source of competitive advantage and valuation of long dated options and convertible securities.

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