CAPITAL MARKET REACTIONS TO THE ANNOUNCEMENT OF STOCK SPLIT (Studies on Go Public Compani that Perform A Stock Split Years 2011-2015 in The Indonesia Stock Exchange)
Abstrack: The
purposes of this research is to investigate the market’s reaction events of the
stock split announcement, proxied by abnormal returns and trading volumes. Hypothetical
test in this research was using paired sample t test in the differences of
abnormal return and wilcoxon signed rank to trading volume.Based on the results
of hypothetical test, this research concluded that the market reacts negatively
against the event of stock splits. The conclusion obtained from the presence of
significant decrease of average volume of trade after the split event, where as
the average of abnormal return decreases however not significant after the
event of stock splits.
Key words:
corporate action, stock split, event study
Penulis: Juandy
Seiver Langelo
