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Differences between before and after stock split in companies listed on the Indonesia Stock Exchange

Author

Listed:
  • Siti Hidayati

    (Universitas Pembangunan Nasional Veteran jakarta)

  • Farihah Shufiyani Muin Putri

    (Universitas Pembangunan Nasional Veteran jakarta)

Abstract

This research is in the form of quantitative research that aims to determine differences in stock prices, abnormal returns, and stock trading volumes before and after the stock split. The sample selection in this study was carried out using a purposive sampling method and obtained a sample of 58 companies from companies that listed on the Indonesia Stock Exchange and carried out stock split corporate actions during 2016 until 2020 period. Hypothesis testing in this study used the SPSS version 28 program using the Paired Sample T-test method for data that is normally distributed and the Wilcoxon Signed-Rank Test for data that is not normally distributed. The result of the research is that there is no difference between stock prices before and after the stock split, while there is a difference between abnormal returns before and after the stock split, and there is a difference between the stock trading volume before and after the stock split. Key Words:stock price, abnormal return, stock trading volume, stock split

Suggested Citation

  • Siti Hidayati & Farihah Shufiyani Muin Putri, 2022. "Differences between before and after stock split in companies listed on the Indonesia Stock Exchange," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 252-259, March.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:2:p:252-259
    DOI: 10.20525/ijrbs.v11i2.1617
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    References listed on IDEAS

    as
    1. McNichols, Maureen & Dravid, Ajay, 1990. "Stock Dividends, Stock Splits, and Signaling," Journal of Finance, American Finance Association, vol. 45(3), pages 857-879, July.
    2. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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