Volume : I, Issue : II, October - 2012

Market Efficiency of Indian Stock Market � A Study of Bonus Announcement in Bombay Stock Exchange

M. Bharath, Dr. H. Shankar

Abstract :

Efficient market emerges when new information is quickly incorporated into the price. In other words the current market price should reflect all publically available information. Under such conditions the current market price in any financial market could be the best unbiased estimate of the value of the investment. The present study is an attempt to test the informational efficiency of the Indian Stock Market in the semi–strong form of efficient market hypothesis with respect to the information content of the event bonus issue announced by companies listed in BSE 500 during the study period. The AARs and CAARs were analysed to ascertain whether an opportunity was available to make above abnormal returns during the price adjustment period. The study reveals that the investors have not been able to earn abnormal returns in the study companies

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

M. Bharath, Dr. H. Shankar Market Efficiency of Indian Stock Market � A Study of Bonus Announcement in Bombay Stock Exchange Indian Journal of Applied Research, Vol.II, Issue.I October 2012

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