Market Reaction to Bonus Announcement in Post Global Financial Crisis Era: Evidence from India
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.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MTI journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.