Wealth Maximization: An Empirical Analysis of Bonus Issues

Authors

  • Simranjeet Kaur Sandhar Indore Institute of Science & Technology, Indore
  • Silky Janglani Indore Institute of Computer Application, Indore

DOI:

https://doi.org/10.33516/maj.v48i2.175-180p

Abstract

In financial management wealth is defined as value of the shareholder's equity. It is generally agreed in theory that financial goal of the firm should be shareholders wealth maximization as reflected in the market value of the firm's shares. The financial manager must know or at least assume the factors that influence the market price of shares; otherwise he would find himself unable to maximize the market value of the company's shares. The paper is a study on the bonus issues which is one of the important factors for maximizing shareholder's wealth. So the basic objective of the study is to know the relationship of Bonus issues made by the company with EPS and MPS of its stocks. The results depicts that bonus issues does not make significant difference on EPS and MPS of stocks. Further moderate degree of correlation was found between the variables. Also negative correlation was established between MPS and bonus issue on the contrary EPS illustrated a positive value of correlation with Bonus issues.

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Published

2013-02-01

How to Cite

Sandhar, S. K., & Janglani, S. (2013). Wealth Maximization: An Empirical Analysis of Bonus Issues. The Management Accountant Journal, 48(2), 175–180. https://doi.org/10.33516/maj.v48i2.175-180p

Issue

Volume 48, Issue 2, February 2013

Section

Financial Management
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