An Impact of Bonus Issue on Stock Returns Volatility

Abstract

The relationship between bonus issue and their impact on share price has been a constant source of conversation among researchers for as long as couple of years. In this study starts with Introduction to the stock market in India, followed by conceptual background, research design, analysis and interpretation and finally findings and conclusion to research. Statement of the problem, need for the study and Objectives of the study has been specified with review of Literature and the Limitations of the study. Multiple Regression and Hypothesis methodology used for the calculation and study is statistical research and tools used are Mean, Standard Deviation, Volatility of Stock returns and applied t-test as a testing tool for two different mean samples to make the required interpretation. Data collected is from the secondary sources from the websites like money control, yahoo finance, NSE and BSE India. Price relative and Daily return has been measured during analysis. The research is mainly based on the analysis of bonus issue that is both before and after the bonus issue on stock returns volatility.