In inflationary environments, companies can avoid paying cash dividends to
their shareholders. Instead they give them free shares, referred to as bonus
distributions. This issue has not been analysed in previous studies, partly
because the inflation in many western countries is relatively low and
In this study, the market valuation of this unusual form of stock dividends
was assessed, this was carried out by transferring the accumulated equity
reserves, mainly the inflation revaluation equity reserves, to paid-in capital
leaving the total equity unchanged.