Gopaljee and Amul Milk Products - 5554 Words

Market reaction around the Announcement of Stock Split and Bonus Issues in India: An Empirical Analysis Dr. Vibha Dua Satija, vibha.dua.satija@gmail.com, Reader, Delhi Institute of Advanced Studies, Affiliated to G.G.S.I.P University, Delhi Dr. Harsh Purohit , iic@banasthali.in, Associate Professor Chair- ICICI Bank CBFSI , WISDOM, Faculty of Management Studies, Banasthali University, Banasthali Vidyapith Haritika Sabharwal Chhatwal , haritika@rediffmail.com, Senior Lecturer , Delhi Institute of Advanced Studies, Affiliated to G.G.S.I.P University, Delhi Abstract Volatility and uncertainty persists in the financial markets across the world. In this environment, each small and big event affects the markets. Therefore, it†¦show more content†¦This is because the dividend rate (% of face value) is not expected to change after bonus issue. When the company makes bonus issue, the shareholders perceive that management is confident of future. A study done by Gupta (1973) finds out that as many as one third of the companies issuing bonus shares did not increase the total dividend payment. According to Ross (1977), Leyland and Pyle (1977) managers use financial decision of stock dividend to convey favorable private information about the current value of the firm. Klien and Peterson (1989), Grinblatt, Masulis, Titman(1984)Brenan and Copeland (1988) Asquith(1989) Lakonishok and Lev(1987) provide further support for this. Abhijit Dutta (2001) has examined the investor reaction to information using the primary data collected from 600 individuals and observes that the individual investors are less reactive to bad news as they invest for longer period. Hari Om Chaturvedi (2000) in his doctoral thesis observed that the cumulative abnormal returns (CAAR) between the portfolios with positive and negative unexpected half yearly earnings were significant. A few studies have been carried out in recent years to test the announcement effects of bonus issue in Indian stock market. Ramachandran (1988) found out mixed evidence for semi strong form of efficiency in Indian stock market. M. Obaidullah (1992) and Rao (1994) found positive stock market reaction to equityShow MoreRelatedâ€Å"Trade Promotion Incentive Scheme: Concept and Implementation Synergy†9222 Words   |  37 Pagesmany government offices, it was likely for the milk sales to fall. To retain the sales of Poly Pack Milk, Mother Dairy proposed an incentive scheme to the Retailers, Wholesale Dealers and Home Delivery Agents that sold Mother Dairy milk. The scheme was proposed in all regions of Delhi/NCR. The offer given was of an additional incentive of up to [pic]1.5 per liter for volumes of milk converted from other competitor brands like Amul, Paras, Gopaljee, etc., to Mother Dairy. The scheme was available