The Effect of Stock Split on Stock Return, Stock Trading Volume, and Systematic Risk in Companies Listed on the Indonesia Stock Exchange
Journal Title: International Journal of Finance, Economics and Business - Year 2022, Vol 1, Issue 1
Abstract
In the Indonesian capital market, corporate action is commonly used. Public companies adopt corporate activities to improve their performance and benefit their shareholders. One of the corporate actions that companies often carry out is a stock split. The stock split is a corporate action carried out by an issuer to increase the number of shares outstanding. The stock return, stock trading volume, and systematic risk indicators are used to assess the effectiveness of the stock split event. The study was carried out to see the effect of the stock split event regarding whether there were differences in stock returns, stock trading volume, and systematic risk before and after the stock split. This study uses secondary data taken from the official website of the Indonesia Stock Exchange. The sample was selected using a purposive sampling method with certain criteria. The sample in this study amounted to 37 companies listed on the Indonesia Stock Exchange that carried out stock split actions from 2017 to 2020. The results showed a significant difference in abnormal stock returns, stock trading volume, and systematic risk before and after the stock split.
Authors and Affiliations
Hasnul Muna and Muammar Khaddafi
Keywords
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- EP ID EP708505
- DOI https://doi.org/10.56225/ijfeb.v1i1.4
- Views 89
- Downloads 0
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