Essentially all profitable companies can keep a part of their profits to strengthen their financial situation. Thus, the reserves of the reductions in the last few years can be used for expansion, modernization and debt redemption or the needs of the working capital. A company can capitalize its benefits or free reserves by bonus issue. There is no tax benefit earned by bonus issues or legal restrictions to change the store in capital. This is the general practice to bring the paid capital according to the market value of the shares by issuing bonus shares by companies. Whenever bonus share is the issue, a question arises in the mind of shareholder that he actually privileged with that dividend which was not given in the past years? Exactly the price of the stock has increased with this resulting advantage? Shareholders do not benefit in the case of money from bonus issues. Many studies have been done in areas of capital market in advanced countries. There has been extensive research regarding incident studies. Studies made abroad have examined the stock division and stock dividends, affiliate price changes and reasons behind their performance. Long-term and short-term results of stock division and stock dividend, has also been examined in liquidity effects of affiliate costs and issues. Abnormal performance has also been widely studied around the bonus issues. To evaluate the reaction of bonus at the cost of the stock, approximately 50 listed companies have been selected who have announced bonus shares, and has been adopted to analyze unusual or more returns through an event study method. This addition returns from comparison to the use of the paired T-Test. The result received from the reveal that after the bonus is released, the number of shareholder’s stock hold increases or is manifold, but after the former bonus incident, the market value of securities decreases, resulting in shareholders no benefit and there is no effect at the cost of the stock.

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Keywords: Bonus, Shareholders, Earnings, Performance, Dividend, Dilution, Retained.