Bonus and Wealth - A Conceptual Review

Over the years, finance literature is enriched with numerous researches focusing on tools to be practiced for wealth creation. Shareholders wealth maximisation has always made the researchers puzzled and inspired to solve it differently. The present study focus to investigate role of bonus announcements for capitalizing the wealth creation opportunities. The study contributes to the existing literature on shareholders wealth creation through informational content impact of bonus issue announcements. The study provides a conceptual framework to understand bonus and wealth creation from a synthesis of literature on bonus. Prevailing literature puts forward mixed views on wealth creation through bonus issue announcements with a focus on the entire index. Sector specific findings with varied time horizon still remains an interesting avenue to be explored further.