scholarly journals Analysis Of Corporate Actions And Effect On Stock Trading The Indonesia Stock Exchange

2019 ◽  
Vol 5 (1) ◽  
pp. 15
Author(s):  
Fitriana Fitriana ◽  
Tahmat Tahmat ◽  
Abang Firdaus ◽  
Iskandar Ahmaddien
Keyword(s):  
Stock Exchange ◽  
Corporate Action ◽  
Study Results ◽  
Significant Difference ◽  
Stock Split ◽  
Stock Buyback ◽  
Buy Back ◽  
Corporate Actions ◽  
Stock Dividends ◽  
Stock Dividend

This study aims to look at the effect of the corporate action against trading on the Stock Exchange be something interesting to do research on five companies that perform corporate actions. Data were analyzed using descriptive methods and comparative analysis of the event study method with a different test two parties. Event windows use 15 days prior to the corporate action and 15 days after the corporate action. Results of research on five companies that perform corporate actions earned actions stock buy-backs, stock-dividend and stock split no significant effect on actual returns after the announcement date. On the trading frequency, action stock-buyback have significant differences, whereas stock dividend and stock-split not. On average trading value, action stock-dividend and stock-buyback not any significant difference, while stock-split showed a significant difference. The study results are not normal events of their return on stock dividends 7 days after the date of announcement of the action stock-split-return normal not occur on days 3 and 4, while on the corporate action buy-back not occur. Stock-dividend while the information content contained in stock-split and buy-back did not show a significant investor reaction.

scholarly journals The Impact of Stock Dividends and Stock Splits on Shares’ Prices: Evidence from Egypt

2017 ◽  
Vol 6 (4) ◽  
pp. 96 ◽  
Author(s):  
Osama Abd ElKhalek El Ansary ◽  
Mervat Hussien El-Azab
Keyword(s):  
Stock Prices ◽  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Price Volatility ◽  
Stock Splits ◽  
Stock Split ◽  
Corporate Actions ◽  
Stock Dividends ◽  
The Impact

This research aims to examine the effect of two types of corporate actions,“Stock Split” and “Stock Dividends”, on the shares’ prices, liquidity changes, and price volatility; and to investigate the efficiency of the Egyptian stock market in response to the announcement of the corporate actions. The research provides the investors with a scientific tool to predict and explain changes in stock prices in response to announced corporate actions and to improve their investment decision-making process.The objective is to investigate whether the two actions collectively or independently have a positive impact on the prices of the related stocks listed on the Egyptian Stock Exchange (EGX), and assess the similarities and dissimilarities between their individual impacts.We applied the “Event Study” approach to measure the impact of the stock splits and stock dividends announcement on the stock prices through measuring the cumulated average abnormal return (CAAR) resulted from events to assess their impact on the stock performance around the announcement day (for a period of 30 prior and 30 days post announcement) as applied before by Terhi (2011).  The analysis concluded that the announcement of both of stock split and stock dividend has a positive impact on stock prices. This positive impact drove the authors to test the efficiency of EGX in respect of the impact of the announcement the corporate actions to the public investors. A correlation analysis is performed to reflect this impact. 

scholarly journals Dilemma of Corporate Action: Empirical Evidences of Bonus Issue vs. Stock Split

2008 ◽  
Vol 33 (3) ◽  
pp. 35-48 ◽  
Author(s):  
Srinivas Shirur
Keyword(s):  
Market Efficiency ◽  
Policy Implications ◽  
Share Price ◽  
Stock Splits ◽  
Rate Of Growth ◽  
Corporate Action ◽  
Significant Difference ◽  
Stock Split ◽  
Corporate Actions ◽  
Efficiency Hypothesis

Corporate action is usually believed to offer some good news to the investors, particularly in case of amalgamation and mergers. In many cases, corporate actions do not involve any potential future positive benefits to the company as is the case with bonus issue and stock splits. Such types of actions of the companies could be called as fictitious corporate actions. It has been noticed by many empirical studies that the market react positively to the announcement of bonus shares and stock splits. This study analyses the reasons for the issue of bonus shares and stock splits on a sample of 165 companies which have issued bonus shares and 134 companies which have gone for stock splits during January 2000 to September 2006. An effort is also made to find the distinguishing conditions under which a company has to decide whether to issue bonus shares or to go for stock splits. Five variables have been considered for the study: rate of growth of sales and profit, beta and share price increase, and promoter stake. Effort has been made to explore whether there is any significant difference in these variables as applicable to stock split and bonus shares. The study reveals that top management of the companies decide to issue bonus shares when the investors undervalue the company while they go for stock split when the investors overvalue the company for a long time and promoters have to step in to correct these anomalies. This merely goes on to prove that capital markets are not inherently efficient even in the long run and promoters have to intervene to manage the prices of their stocks through corporate actions. This puts a question mark on the Market Efficiency Hypothesis and an effort has been made to test the ability of NSE to depict semi-strong and strong form of Market Efficiency Hypothesis. As far as policy implications are concerned, the author suggests that: Companies may resort to bonus shares issue if the rate of growth of share price lag behind the market index and the rate of growth of sales and profit is higher than the companies included in the index. In contrast, they may resort to stock split if the rate of growth of share price is higher than that of the index while the growth in sales and profit is less than the companies included in the index. One should also be cautious while applying this rationale. There are significant number of companies (negative companies) which may resort to fictitious corporate actions even if their rate of growth of sales or profit or both are negative in order to mislead the investors by resorting to false signaling.

Impact of Corporate Actions on Shareholder Wealth: A Study on the Bombay Stock Exchange

2019 ◽  
Keyword(s):  
Total Population ◽  
Stock Exchange ◽  
Shareholder Wealth ◽  
Share Price ◽  
Event Window ◽  
Buy Back ◽  
Corporate Actions ◽  
High Level ◽  
The Impact ◽  
Rights Issues

This study focuses on five corporate actions (dividend announcement, stock split, bonus issue, right issues, buy-back, and right issue) and attempts to determine their impact on shareholders’ wealth. The companies in the S&P BSE 500 index are taken as the total population, and the performance of those with corporate actions is compared to that in the broader universe. The study analyzes the impact by taking the share price of sampled companies for 30 days before and 30 days after the announcement of corporate actions. A paired-sample t-test is used to determine the impact of the corporate actions on share price in the event window period. The study concludes that corporate actions have significant impact on shareholders’ wealth; the level of impact is different for different corporate actions, but it does not differ according to the nature of the industry. The dividend and buy-back have a low level of impact, and bonus issues, rights issues, and stock splits have a high level of impact on shareholders’ wealth. Finally, the study proves that corporate actions are quite relevant to shareholders’ wealth.

scholarly journals THE ANALYSIS OF ABNORMAL RETURN, LIQUIDITY AND STOCK RISK DIFFERENCE DURING PRE AND POST STOCK SPLIT IN IDX PERIOD 2010 – 2014

2017 ◽  
Vol 8 (1) ◽  
pp. 20
Author(s):  
Umi Mardiyati ◽  
Rachmattullah Rachmattullah ◽  
Gatot Nazir Ahmad
Keyword(s):  
Abnormal Return ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Sampling Period ◽  
Risk Difference ◽  
Rank Test ◽  
Distribution Data ◽  
Significant Difference ◽  
Stock Split ◽  
Before And After

This study aimed to analyze the differences of abnormal return, liquidity and risk stock before and after the stock split on companies listed in Indonesia Stock Exchange 2010 - 2014. The sample are 29 companies selected by purposive sampling. Period of observations used in this study is 5 days before the stock split and 5 days after the stock split. The analysis technique used is the Kolmogorov-Smirnov test for normality test, paired sample t-test for normally distributed data and Wilcoxon signed rank test if distribution data is not normal. Results from the study showed that there is no significant difference in abnormal returns between before and after stock split period, there are differences in liquidity between the before and after stock split period and there is no difference in stock risk between before and after the stock split period.   Keywords : Stock Split, Abnormal Return, Liquidity, Stock Risk

scholarly journals Analisis Perbandingan Abnormal Return Dan Likuiditas Saham Sebelum Dan Sesudah Stock Split Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Periode 2010-2015

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Cindy Hadiwijaya Dan Indra Widjaja
Keyword(s):  
Abnormal Return ◽  
Sampling Method ◽  
Stock Exchange ◽  
Rank Test ◽  
Signed Rank ◽  
Significant Difference ◽  
Stock Split ◽  
Before And After ◽  
Signed Rank Test ◽  
Observation Period

This research aims to find out whether there is a significant difference in abnormal return and liquidity of shares before and after stock split for companies listed in Indonesian Stock Exchange during 2010-2015. 46 samples were obtained using purposive sampling method. The observation period is 10 days before and after stock split announcement. Hypothesis was tested by using Wilcoxon Signed Rank Test with significant level of 0.05. The result of this research shows that there is a significant difference in abnormal return before and after stock split, while there is no significant difference of share’s liquidity before and after stock split.

scholarly journals 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)

2020 ◽  
Vol 1 (4) ◽  
pp. 696-709
Author(s):  
Rimada Diamanta Putri Diamanta Putri ◽  
Pardomuan Sihombing
Keyword(s):  
Stock Price ◽  
Trading Volume ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Sampling Technique ◽  
Stock Trading ◽  
Bid Ask Spread ◽  
Significant Difference ◽  
Stock Split ◽  
Before And After

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.

scholarly journals Analisis Perbedaan Bid Ask Spread dan Volatilitas Saham Sebelum dan Sesudah Pengumuman Stock Split

2018 ◽  
Vol 7 (1) ◽  
pp. 17
Author(s):  
Noerita Febrianti
Keyword(s):  
Hypothesis Testing ◽  
Stock Exchange ◽  
Stock Volatility ◽  
Bid Ask Spread ◽  
Normality Test ◽  
Significant Difference ◽  
Stock Split ◽  
Before And After ◽  
Kolmogorov Smirnov ◽  
Bid Ask Spreads

This study aimed to analyze the differences of bid ask spread and stock volatility before and after the announcement of stock split on companies listed in Indonesia Stock Exchange 2010-2013 period. The samples are 30 companies chosen by purposive sampling method. This study used event period 5 days before and 5 days after stock split with descriptive statistical analysis techniques, the normality test (one sample kolmogorov smirnov test), and hypothesis testing (wilcoxon signed ranks test). The results of the descriptive statistics indicate that the bid ask spread after announcement of stock split has decreased while increasing stock volatility than before announcement. However, the results of hypothesis testing with the wilcoxon signed ranks test showed that both the bid ask spreads and stock volatility is not significant difference between before and after announcement of stock split.

scholarly journals Dampak Reverse Stock Split terhadap Nilai Perusahaan yang Terdaftar di Bursa Efek Indonesia

2019 ◽  
Vol 29 (3) ◽  
pp. 1094
Author(s):  
Evelin Budiarti ◽  
Ida Bagus Putra Astika
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Wilcoxon Test ◽  
Share Price ◽  
Analysis Technique ◽  
Stock Split ◽  
Before And After ◽  
Reverse Stock Split ◽  
Corporate Actions ◽  
A Company

Maximizing the firms value is one of the company’s goals in running its business. The value of a company is often affected by the share price. The stock price itself changes because of the demand and supply in the market. In making investment decisions, investors consider several factors, such as information of corporate actions. Reverse stock split is one type of corporate action. The purpose of this study is to obtain empirical evidence regarding differences of firms value before and after reverse stock split. This research was conducted at companies published on the Indonesia Stock Exchange in 2009-2018. Samples were selected using purposive sampling method so as many as 15 companies were obtained. The data analysis technique used in this study was the Wilcoxon test. The results of this study indicate there is no difference of firms value between before and after a reverse stock split. Keywords : Reverse Stock Split; Stock Split Down; Firms Value.

scholarly journals Study of Comparison of Stock Performance Before And After Doing Split Stock In Go Public Companies That Are Listing on The Idx Period 2013 – 2015

2019 ◽  
Vol 2 (1) ◽  
pp. 1-17
Author(s):  
R.A. Norromadani Yuniati ◽  
Latof Syeikhur Rabbani ◽  
Mirza Safitri Agatha Putri
Keyword(s):  
Abnormal Return ◽  
Trading Volume ◽  
Stock Exchange ◽  
Rank Test ◽  
Volume Activity ◽  
Security Return ◽  
Significant Difference ◽  
Stock Split ◽  
Before And After ◽  
The Difference

This study aims to determine the difference in abnormal return, trading volume activity, and security return variability before and after the stock split announcement on companies listed on the Indonesia Stock Exchange for the period 2013 - 2015. Testing the information content will be done by looking at differences in average abnormal return, average security return variability and average trading volume activity five days before and five days after the announcement of the stock split. The data analysis method that will be used is descriptive statistical analysis and different tests before and after the stock split announcement using the Wilcoxon signed rank test. The results of this study indicate that there are significant abnormal return differences before and after the stock split announcement, there is no significant difference in trading volume activity before and after the stock split announcement, and there is no significant difference in security return variability before and after the stock split announcement.

scholarly journals Stock Dividend Ex-Day Abnormal Return

2021 ◽  
Vol 72 (5) ◽  
pp. 670-696
Author(s):  
Eyup Kadioglu ◽  
Ayhan Kirbas
Keyword(s):  
Abnormal Return ◽  
Stock Return ◽  
Stock Exchange ◽  
Market Index ◽  
Istanbul Stock Exchange ◽  
Positive Abnormal Return ◽  
Stock Dividends ◽  
Asset Size ◽  
The Impact ◽  
Stock Dividend

This study examines the impact of the ex-day of stock dividend on stock return and volume on Borsa Istanbul stock exchange. The data covers 1,220 stock dividends associated with 305 companies over the period 1997-2018. A positive abnormal return and volume is seen around the ex-day of stock dividend. The cumulative average excess return over market return starts to significantly rise ten days before ex-day and reaches its highest level on the ex-day before falling back in the days following. Our findings show that abnormal return around ex-day is strongly associated with stock dividend pay-out ratio, asset size and a company’s market value. The share of listed companies with higher stock dividend pay-out ratio or lower asset size or lower market capitalization, can generate respectively 5.97%, 6.08% and 5.88% abnormal return over market index return.

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