International Journal of Applied Research
Vol. 1, Issue 7, Part L (2015)
Volatility of Stock prices around Bonus share Announcements
The study examines the market reaction to bonus share announcements in the Indian Stock Market of CNX 500 stocks for the period 2013 and 2014 using event study methodology. The AAR on -15 day is found to be positive and significant which shows the leakage of information before the event. The CAAR is found to be positive from -15 day to +7 days supporting the signaling hypothesis of bonus share announcements. The negative CAAR from +8 to +30 days supports the trading range hypothesis.
How to cite this article:
Sharmila R, Nanjundaraj Prem Anand, Thiyagarajan. R. Volatility of Stock prices around Bonus share Announcements. Int J Appl Res 2015;1(7):701-706.