<![CDATA[The purpose of this study is to see the stock marketreaction to an event (event) dividend payment announcementabnormal return approach, the average abnormal stockreturn and Trading Volume Activity (TVA) before and afterthe dividend announcement on companies that make dividendpayments. This study uses event study approach, to seethe abnormal return by way of observing the stock marketduring the window period is 20 days before and 20 days afterthe event. Method of sampling using purposive sampling thatsample selection based on certain criteria and acquired 26companies that make the announcement of dividends paidin 2007. Results showed that there is a significant abnormalreturn occurs on day t-17, T-10, t-2, t +1, t +5 and this meansthat the announcements have information content of dividendpayments so that the market reacted to the announcement,as evidenced by obtaining a significant abnormal return. Inaddition the research also shows that announcements ofdividend payments make a difference on average abnormalstock returns significantly between before and after the event.Another result of this research is that there are differencesin Trading Volume Activity significantly between before andafter the announcement of events paying dividends.Keyword: Dividend, Abnormal return, Efficiency market]]>
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