20Jan 2017

IMPACT OF STOCK DIVIDEND/BONUS ISSUE ON RETURNS OF STOCK LISTED IN KARACHI STOCK EXCHANGE.

  • Bahria University, Islamabad.
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This paper investigated the impact of stock dividend/bonus issue on return of corresponding company. Event study approach has been used to explore the abnormal return. For this purpose, 81 days event window has been created with 40 days of a pre and post window on the event occurred respectively. 27 service sector companies have been selected and calculated AR (Abnormal Return), AAR (Average Abnormal Return) and CAAR (Cumulative Average Abnormal Return). Finally, t-test technique applied to check the significance of the findings. This study concluded that bonus issues have a positive effect on the stock returns but the results are insignificant.

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[Kamran Ahmad, AaminaIhsan and Rabia Khalid. (2017); IMPACT OF STOCK DIVIDEND/BONUS ISSUE ON RETURNS OF STOCK LISTED IN KARACHI STOCK EXCHANGE. Int. J. of Adv. Res. 5 (Jan). 1666-1678] (ISSN 2320-5407). www.journalijar.com

Kamran Ahmad
Bahria University, islamabad

DOI:

Article DOI: 10.21474/IJAR01/2935      
DOI URL: http://dx.doi.org/10.21474/IJAR01/2935

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