Download or read book An Empirical Analysis of Stock Price Behaviour Around Bonus Issue Announcement in India written by Poonam Kumari and published by . This book was released on 2020 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate actions announcement is usually assumed to offer good news to participants in market. In case of fictitious corporate action such as Bonus share issue, tend to react on market price positively or negatively. In light of this, present study aims to investigate the impact of Bonus Issue announcement on Indian stock market for the period of five years from 2014 to 2018. We applied event study methodology using a sample size of nine companies from BSE. Percentage Analysis, CAGR (Compounded Annual Growth Rate), Mean, Standard Deviation, Regression Analysis and t-test as statistical tools have been used to analyse and interpret the data. Investigation window (t-10 to t+10) taken for all bonus issue announcement event to test the abnormal return considering nine companies. The result reveals that Indian Stock market does not react to bonus share issue announcement. Thus, this paper contributes to the fact that there is no significant effect on stock price when a company announces the issue of bonus shares.

Download or read book An Empirical Analysis of Market Reaction Around the Bonus Issues in India written by Asim Mishra and published by . This book was released on 2005 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Past researches have revealed significant abnormal returns for bonus issues even though the bonus issue date is known in advance and the distribution contains no new information. This study examines the stock price reaction to the information content of bonus issues with a view of examining the Indian stock market is semi-strong efficient or not. The period of the study is June 1998 to August 2004. Samples of 46 bonus issues have been used to study the announcement effect by using event study methodology. The results indicate that there are significant positive abnormal returns for a five-day period prior to bonus announcement in line with evidence from developed stock market. On the announcement day the average abnormal return of -0.10% is observed. The results provide stronger evidence of semi-strong market efficiency of the Indian stock market.

Download or read book Capital Market Reaction Around the Stock Splits and Bonus Issues written by Anirban Ghatak and published by . This book was released on 2014 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the years relationship between bonus issues or stock splits & stock prices has been the subject of much empirical discussion within the finance literature. According to theory, bonus issues increase the number of equity stocks outstanding but have no effect on stockholder's proportional ownership of stocks. The bonus issue or stock splits date is known well in advance and therefore should contain no new information. As such, one would not expect any significant price reaction on bonus issue or stock splits announcement. Contrary to this theoretical prediction, however empirical studies of bonus issues and stock splits have documented a statistically significant market price reaction. It is therefore a matter of concern that firms announcing bonus issues & stock splits experience rise in their stock prices on an average supporting semi-strong form Efficient Market Hypothesis (EMH). Generally the investigation of semi-strong form market efficiency has been limited to the study of well developed stock markets. The aim of this paper is to examine the stock price reaction to information release of bonus issues or stock splits with a view of examining whether the Indian stock market is semi-strong efficient or not. The event study methodology (Dolley 1993, Fama et al. 1969 and Brown & Warner 1980, 1985) has been used to contribute further evidence on the efficiency characteristics of the Indian stock market.

Download or read book Market Reaction to Bonus Issues and Stock Splits in India written by Koustubh Kanti Ray and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate events have numerous effects on the stock market, as found by several research studies in the world. In this regard, the aim of this paper is to test the semi-strong form of efficiency in the Indian equity market, following an event study approach. The events considered in this paper are bonus issues and stock splits that took place in the market from 1996 to 2008. These events are tested for abnormal returns and liquidity. The data selected is free from the impact of confounding events. -30 to 30 days investigation window is taken for all the events to test the abnormal returns and the change in liquidity. The results suggest that the Indian market reacts to the stock split announcements but not to bonus issues, and the change in liquidity is significant for stock splits at 1% significance level, whereas with 5% level of significance both bonus issues and stock splits show significant change in liquidity from pre- to post-event period.

Download or read book Technical Analysis of Bonus Issues written by Neha Rohra and published by . This book was released on 2016 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bonus Issues are generally regarded as cosmetic events as they simply involve a change in the number of outstanding shares. However, many researchers have found numerous stock market effects associated with bonus issues. This paper examines the impacts of bonus issue for the Indian stock market. To capture short run/immediate effect of bonus issue announcement on the stock price and shareholders return, this study has used Market Model to calculate abnormal returns and employed both parametric and non-parametric tests on it to check the significant differences in two sample (pre- and post-announcement) data set. Further, semi-log regression equations have been estimated to support the analysis. Out of total 3 cases of bonus issues studied, two cases have shown that stock price increases significantly in the post-announcement period and, one case has shown no significant change. Moreover, we have observed increase in abnormal returns in the post period in case of two sample firms while a decrease in abnormal returns in post-announcement period has been observed for one sample firm, but these changes were found to be statistically insignificant at 5% level. Overall on the basis of majority of bonus issue results, the study concludes that bonus issue announcements have a positive effect on share price which ultimately increases the returns in the short run. We have also investigated the efficiency of Indian stock market in semi-strong form in the case of bonus issue announcements. Both, parametric and non-parametric test have been used to test for market efficiency. The finding from this research is that Indian stock market is efficient in semi-strong form in the case of bonus issue announcements.

Download or read book Stock Returns Aggregate Earnings Surprises and Behavioural Finance An Empirical Study on Indian Market written by Narayan Rao Sapar and published by . This book was released on 2017 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the stock market's reaction to aggregate earnings news and better understand the relationship among earnings, stock prices, and discount rates Prior research shows that, for individual firms, stock prices react positively to earnings news but require several quarters to fully reflect the information in earnings. Our analysis shows that the market's reaction to aggregate earnings is quite similar to its reaction to firm earnings. Taking all of the results together, we find some evidence that prices react slowly to aggregate earnings news. The evidence supports the recent behavioral finance theories which explain post-earnings announcement drift in firm level are also applicable at the aggregate level. The results also provide new evidence on the connections among prices, earnings, and discount rates. The autocorrelations among earnings suggest that relationship between the current earnings over its previous earnings is predominantly negative and past earnings have little power to predict future earnings. The analysis also shows that earnings are correlated with changes in proxies for discount rates. However, the limited data set available could bound the significance of the results.

Download or read book Stock Market Reaction and Liquidity Changes Around Bonus Issue Announcement written by Madhuri Malhotra and published by . This book was released on 2007 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines share price reaction to the announcement of Bonus Issue for a sample of Indian Companies. Standard event study methodology has been used for the purpose of studying the Bonus issue announcement reaction. Bonus issue announcement yields negative abnormal returns around the announcement date. There is a negative reaction after the bonus issue announcement conveying that the market underreacts after the announcement. It is also observed that there is no information leakage prior to the announcement. Reduction in the liquidity ratio after the announcement is evidenced, though insignificant. All the three liquidity measures seem to be inconsistent with the enhanced trading liquidity expectation. Cross sectional regression shows that the number of shares issued, convey a positive signal to the investors. Further it has been evidenced that the size of the firm issuing bonus shares does not affect the abnormal returns of the company. The study supports Signaling Hypothesis and Cash Substitution Hypothesis.

Download or read book The Handbook of Equity Market Anomalies written by Leonard Zacks and published by John Wiley & Sons. This book was released on 2011-08-24 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment pioneer Len Zacks presents the latest academic research on how to beat the market using equity anomalies The Handbook of Equity Market Anomalies organizes and summarizes research carried out by hundreds of finance and accounting professors over the last twenty years to identify and measure equity market inefficiencies and provides self-directed individual investors with a framework for incorporating the results of this research into their own investment processes. Edited by Len Zacks, CEO of Zacks Investment Research, and written by leading professors who have performed groundbreaking research on specific anomalies, this book succinctly summarizes the most important anomalies that savvy investors have used for decades to beat the market. Some of the anomalies addressed include the accrual anomaly, net stock anomalies, fundamental anomalies, estimate revisions, changes in and levels of broker recommendations, earnings-per-share surprises, insider trading, price momentum and technical analysis, value and size anomalies, and several seasonal anomalies. This reliable resource also provides insights on how to best use the various anomalies in both market neutral and in long investor portfolios. A treasure trove of investment research and wisdom, the book will save you literally thousands of hours by distilling the essence of twenty years of academic research into eleven clear chapters and providing the framework and conviction to develop market-beating strategies. Strips the academic jargon from the research and highlights the actual returns generated by the anomalies, and documented in the academic literature Provides a theoretical framework within which to understand the concepts of risk adjusted returns and market inefficiencies Anomalies are selected by Len Zacks, a pioneer in the field of investing As the founder of Zacks Investment Research, Len Zacks pioneered the concept of the earnings-per-share surprise in 1982 and developed the Zacks Rank, one of the first anomaly-based stock selection tools. Today, his firm manages U.S. equities for individual and institutional investors and provides investment software and investment data to all types of investors. Now, with his new book, he shows you what it takes to build a quant process to outperform an index based on academically documented market inefficiencies and anomalies.

Download or read book Indian Stock Market written by O. P. Gupta and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Developing an Effective Model for Detecting Trade Based Market Manipulation written by Jose Joy Thoppan and published by Emerald Group Publishing. This book was released on 2021-05-05 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developing an Effective Model for Detecting Trade-Based Market Manipulation determines an appropriate model to help identify stocks witnessing activities that are indicative of potential manipulation through three separate but related studies.

Download or read book Proceedings of the International Conference 2004 on Business Finance Capital markets written by and published by . This book was released on 2005 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This six-part series begins with a look at the proceedings of the international conference that focused on banking, finance and insurance. Volume II brings to light the theoretical concepts of the capital market, investor perceptions, inflation, etc.

Download or read book Indian Management Thought And Practice written by Amit Gupta and published by Gyan Publishing House. This book was released on 2010-08 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Payout Policy written by Harry DeAngelo and published by Now Publishers Inc. This book was released on 2009 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.

Download or read book Dividend Policy and Corporate Governance written by Luis Correia da Silva and published by OUP Oxford. This book was released on 2004-02-26 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividends are not only a signal about a firm's prospects under asymmetric information, but they can also act as a corporate governance device to align the management's interests with those of the shareholders. Dividend Policy and Corporate Governance is the first comprehensive volume on the relationship between dividend policy and corporate governance, and examines in detail empirical studies and current theories. Reviewing the interactions between dividend policy and other corporate governance mechanisms, it compares results for the UK and the US with those for other countries such as France, Germany, and Japan, and provides new empirical evidence on corporate governance in continental Europe and its impact on dividends. Focusing on one of the main representatives of this system, Germany, it highlights major differences between the dividend policies of German firms and those of UK or US firms. Conventional wisdom states that German dividends are lower than UK or US dividends, yet on a published-profits basis the exact converse is true. In addition, the authors demonstrate a link between corporate control structures and dividend payouts, report evidence that the existence of a loss is an additional determinant of dividend changes, and demonstrate that the tax status of the controlling shareholder and the firm's dividend payout are not linked. The conclusions reached in this book have important implications for the current debate on corporate governance, making it invaluable for academics, finance professionals, regulators, and legal advisors.

Download or read book Solving Modern Crime in Financial Markets written by Marius-Cristian Frunza and published by Academic Press. This book was released on 2015-12-09 with total page 523 pages. Available in PDF, EPUB and Kindle. Book excerpt: This comprehensive source of information about financial fraud delivers a mature approach to fraud detection and prevention. It brings together all important aspect of analytics used in investigating modern crime in financial markets and uses R for its statistical examples. It focuses on crime in financial markets as opposed to the financial industry, and it highlights technical aspects of crime detection and prevention as opposed to their qualitative aspects. For those with strong analytic skills, this book unleashes the usefulness of powerful predictive and prescriptive analytics in predicting and preventing modern crime in financial markets. Interviews and case studies provide context and depth to examples Case studies use R, the powerful statistical freeware tool Useful in classroom and professional contexts

Download or read book Management and Labour Studies written by and published by . This book was released on 2009 with total page 644 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Portfolio Management including Security Analysis written by Dr. G. Ramesh Babu and published by Concept Publishing Company. This book was released on 2007 with total page 680 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Indian context.