The study examines the stock market reaction to the information contain of bonus issues with a view to determine whether Indian market is semi strong efficient or not. The study uses the event study methodology to assess the accuracy of stock price reaction to bonus issues announcement of thirty publicly listed companies, which announced bonus during year 2004 to 2005. The study provides the evidence that there is no announcement effect associated with bonus issues in India. However there is significant positive cumulative abnormal return prior to bonus announcement in stock market. The study found support to the hypothesis that Indian stock market is semi strong efficient.
|Journal||Indian Journal of Capital Market|
|Publisher||Informatics Publishing Limited|
|ISSN||2394 - 3459|