Analysis of Stock Price Behaviour around Bonus Issue: A Test of Semi-Strong Efficiency of Indian Capital Market


Affiliations

  • St. Joseph's Evening College, Bangalore, India
  • Manipal University, India

Abstract

Stock price behaviour around bonus issue have been examined for 134 bonus issues of NSE listed companies in India. Two null hypotheses have been tested for similarity between mean and distribution pattern of bonuses by employing “t” and Kolmogorov-Smirnov tests. The results lead to rejection of both hypotheses. As such it is concluded that Indian stock market is semi strong efficient.

Keywords

Bonus Issues, AAR, CAAR.

Subject Discipline

Financial Management

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