*Assistant Professor, Dept. of Commerce, S.D. College for Women, Moga, Punjab, Pin: 142001
**Assistant Professor, Dept of Distance Education (Commerce), Punjabi University, Patiala
Online published on 17 August, 2013.
This study examined share price reaction to the announcement of bonus issue for a sample of Indian 80 companies such as, 30 index companies of BSE and 50 index companies of NSE. Out of these 80 Indian companies the study covers only those which announced the bonus share during the period of 2007 to 2011 Standard event study methodology has been used for the purpose of studying the Bonus issue announcement reaction. Bonus issue announcement yields abnormal returns around the announcement date. The study found that Indian stock market is semi strong in nature because it reflects the bonus share announcement in the share prices of the company.
