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The effect of stock bonuses on the market value of the common stock for the firms which are listed in the Tehran Stock Exchange is studied by
Dr.Ali Jahankhani and Mr. Ebrahim Abbassi. A review
of the theories and views of the scholars and experts on the impact of stock bonuses on the efficiency of the corporate stock, and pros and cons of such policy is provided by the authors.
Furthermore, the authors have measured the impact of the stock bonuses for those corporations which have been active at Tehran Stock Exchange during 1973-1990. The results indicate that the stock bonuses have significantly contributed to the Market value of the stocks of the Iranian Corporations. The authors also elaborate on the psychological impact of the stock bonuses and submit that it has been perceived very favorably by the Iranian investors