THE MEASUREMENT OF STOCK PERFORMANCE ON STOCK SPLITAND REVERSE STOCK
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Date
2020
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Solid State Technology Volume: 63 Issue: 3
Abstract
The purpose of this research to analyze performance of stock measured through abnormal returns
before and after the event of stock split and reverse stock. This research applied event study with descriptive
and comparative method. The observed consisted of 30 issuers that conducted stock splits and reverse stock
during the research period 2018-2019. The data of investigation applied statistical analysis using the mean
difference test (paired sample t test). The research results showed that the mean abnormal returns of stocks
increased after the stock split and reverse stock event. This showed that the market reacts to the stock split and
reverse stock event. The results of paired t test showed that systematic risk has not significant in the differences
between before and after the event of stock split and reverse stock. Abnormal returns showed has significant
differences between before and after the stock split and reverse stock event.
Description
Keywords
Systematic Risk, Abnormal Returns, Stock Split, Reverse Stock, Market Reaction