Adhe Erma Laurenchya
Department of Management, STIE Perbanas Surabaya, Surabaya

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Market Reaction of Stock Split Announcement on Listed Companies in Indonesia Stock Exchange Adhe Erma Laurenchya
IPTEK Journal of Proceedings Series No 1 (2020): The 1st International Conference on Business and Engineering Management (IConBEM)
Publisher : Institut Teknologi Sepuluh Nopember

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12962/j23546026.y2020i1.12963

Abstract

The Issues of stock split is still debatable in the economic field. This is indicated by the mismatch between the theories referred to with practices in the capital market. The focus of the research is to investigate the determinant of the market reaction in the period before and after the announcement of a stock split. This study is designed by qualitative research by using theoretical review based and supporting by previously research. The basic concept underlyed the theoretical review are dimension of trading volume activity, abnormal return, and bid-ask spread. By critical review and classifying the result of previous research, the research found some propositions : (1) stock split have effect on trading volume activity (2) stock split have effect on abnormal return (3) stock split have effect on bid-ask spread