Shell Scrap Object File
The SHS file extension is primarily associated with Shell Scrap Object Files produced by Microsoft Windows.[1] They are created by selecting part of a document content and then dragging and dropping it outside the document program window (e.g. selecting some lines of text in a Word document, dragging and droping them on the desktop). The operating system will create a .shs file with the selected content, which will be useless alone, and only readable by dragging the icon and dropping it in a program which supports this mechanism.
Rumors over the internet
Many informative websites say that .SHS files may contain malicious code however that is far from reality because .SHS files cant contain any code. all they can present is documents, spreadsheets or photo\images. However they can still be used for advertising(e.g contain images that promote to visit web-page or documents containing hyperlinks to websites or luring download virus-Scareware)