The Impact of Stock Split on the Performance in Indonesian Manufacturing Companies

Yustisia, Natali

doi:10.21512/bbr.v9i1.3790

Cited by 13 publications

(12 citation statements)

References 4 publications

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“…It is also in line with research conducted by Rohmah (2019) which states that there are differences in abnormal returns around the announcement of the stock split. However, the results of this study are not in line with research conducted by Yustisia (2018) which found that there was no change in abnormal returns during the stock split announcement period. It is also not in line with research conducted by Adisetiawan (2018) which states that the stock split action has no effect on abnormal returns.…”

Section: Abnormal Returncontrasting

confidence: 99%

“…The results of this study support the results of a study conducted by Yustisia (2018) who obtained the same results ie there was no difference in the bid ask spread in the period before and after the stock split. The same result was also obtained by Utami (2017) who stated that the announcement of the stock split had no effect on the bid ask spread around the announcement.…”

Section: Bid Ask Spreadsupporting

confidence: 90%

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The Effect of Stock Split Announcement on the Trading Volume Activity, Abnormal Return, and Bid Ask Spread (Study on Companies Listed on the Idx for the Period of 2015 - 2019)

Putri

Sihombing

2020

DIJEFA

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This research is motivated by companies that carry out corporate actions in the form of stock splits. The corporate action aims to increase the liquidity of the outstanding shares and to give a positive signal to the company's performance in the future. To find out whether this signal is true or not, it is necessary to test market efficiency which proves that the stock split has an effect on changes in stock trading volume, abnormal returns and the bid ask spread. This type of research is the event study research with a quantitative approach. A sample of 66 companies using purposive sampling technique. The company under study is a company that carried out a stock split and is listed on the Indonesia Stock Exchange for the period 2015 - 2019. The type of data used in this study is secondary data in the form of daily data on sales of shares, number of shares outstanding, stock price (close price), price index. joint stock, stock offer and bid during the period 2015 - 2019. The results of the research through the Wilcoxon Signed Ranks Test with the results (1) There is no significant difference between stock trading volume before and after the stock split; (2) There is a significant difference between abnormal returns before and after the stock split; (3) There is no significant difference between the bid ask spread before and after the stock split.

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Section: Abnormal Returncontrasting

confidence: 99%

Section: Bid Ask Spreadsupporting

confidence: 90%

The Effect of Stock Split Announcement on the Trading Volume Activity, Abnormal Return, and Bid Ask Spread (Study on Companies Listed on the Idx for the Period of 2015 - 2019)

Putri

Sihombing

2020

DIJEFA

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“…el Ansary and El-Azab (2017) analyzed the stock split and dividend announcements in Egypt from 1997 to 2014 and found that these announcements positively impacted the stock returns. Yustisia (2018) examined the stock-split announcement effects on Indonesian manufacturing companies and found no significant impacts on abnormal returns around the announcements. In the case of stock-split announcements, too, researchers have not provided consistent results.…”

Section: Literature Review and Hypothesis Formulationmentioning

confidence: 99%

Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market

Pandey

Kumari

Tiwari

2022

AJAR

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PurposeThe authors examine the impacts of corporate announcements on stock returns during the pandemic stress.Design/methodology/approachThe authors employ the event study methodology with the market model on a sample of 90 events (announcement and ex-date).FindingsThe authors find that all the corporate announcements do not impact the stock returns in a similar pattern. While the bonus announcement, ex-bonus and ex-split events led to positive significant abnormal returns on the event date, the rights issue and stock-split announcements failed to influence the stock returns. The findings suggest that before making such announcements, the corporates should wait until the market recovers because even the positively impacting events result in negative market responses during pandemic stress.Practical implicationsThis study will guide the policymakers to stimulate share prices during such pandemics with the help of various corporate announcements. The investors will be assisted in understanding the stock market mechanism and making wise decisions before reacting to corporate actions during a pandemic or emergency period. While the policymakers are concerned with influencing the share prices, the investors are concerned with the composition of the risk-return parameters in their portfolio. This study will act as an essential investment tool for both.Originality/valueTo the best of the authors’ knowledge, the authors conduct the first-ever study to examine the impacts of corporate announcements during a pandemic stress period that significantly contributes to the literature. The authors examine the announcement effects in India and accurately anticipate that this study will be a pioneer in this field. This study also paves the way for future researches in this area.

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“…Sandra, et al, (2018), Munthe (2017), dan How & Tsen (2019) menunjukan hasil bahwa terdapat perbedaan abnormal return saham dan volume perdagangan saham yang signifikan antara sebelum dan sesudah peristiwa pengumuman . Sedangkan penelitian yang dilakukan oleh Patel, et al, (2016), Yustisia (2018), dan Anggarini & Wiagustini (2015) menunjukan bahwa tidak terdapat perbedaan abnormal return saham dan volume perdagangan yang signifikan antara sebelum dan sesudah peristiwa pengumuman stock split. Penelitian yang dilakukan oleh Nyaga (2017) dan Burnwal (2019) mendapatkan hasil setelah peristiwa pemecahan saham, abornmal return dan volume perdagangan saham mengalami penurunan.…”

Section: Gambar 1 Data Perusahaan Yang Melakukan Stock Split DI Bursa Efek Indonesiaunclassified

Reaksi Pasar atas Pengumuman Pemecahan Saham pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

Dewanata

Wirajaya

2021

E-Jurnal Akuntansi

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This study aims to examine the market reaction caused by the announcement of the stock split. The population used in this study amounted to 67 companies. The method used in sampling using saturated samples, using the entire company that did the stock split. The data obtained is secondary data consisting of stock prices, IHSG, and stock trading volume. In analyzing the data, this study used the One-Sample T-Test and Paired Sample T-Test. The results showed that there was a market reaction to the announcement of a stock split as indicated by an abnormal return, there was a market reaction to the announcement of a stock split as indicated by the volume of stock trading, there is no difference in markets reaction before and after the announcement of the stock split. Keywords: Stock Split; Abnormal Return; Stock Liquidity.

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The Impact of Stock Split on the Performance in Indonesian Manufacturing Companies

Cited by 13 publications

References 4 publications

The Effect of Stock Split Announcement on the Trading Volume Activity, Abnormal Return, and Bid Ask Spread (Study on Companies Listed on the Idx for the Period of 2015 - 2019)

The Effect of Stock Split Announcement on the Trading Volume Activity, Abnormal Return, and Bid Ask Spread (Study on Companies Listed on the Idx for the Period of 2015 - 2019)

Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market

Reaksi Pasar atas Pengumuman Pemecahan Saham pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

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