Study of the effects of capital increase through bonus shares and stock price changes on stock prices of companies listed in Tehran Stock Exchange

Objectives: The main objective of this study was to determine the effects of capital increase through bonus shares and stock price changes on stock prices of companies listed in Tehran Stock Exchange. Method: This is a descriptive study. The statistical population of this study is all companies listed in Tehran Stock Exchange. The sample of this study includes those companies which had been listed in Tehran Stock Exchange during 2008 to 2011, and had gained capital through bonus shares and stock price changes. Pearson correlation coefficient was used to test the hypotheses. Results: Results of this study showed that the correlation between capital increase through bonus shares and stock value was significant and positive. However, there was no significant correlation between stock price changes and stock value. Conclusion: The results of this study showed that capital increase through bonus shares positively affected the stock value. However, capital increase through stock price changes had no positive effect on stock value