ANALYSIS OF THE EFFECT OF STOCK SPLIT ON STOCK PRICES AND STOCK RETURNS IN COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) 2017-2019 PERIOD

To invest in a company, investors usually react if there is a stock split taken by the company. The market reaction can be measured using stock prices and stock returns after the stock split. This study analyzes the effect of stock split on stock prices and stock returns in companies listed on the Indonesia Stock Exchange with population companies listed on the Indonesia Stock Exchange in the 2017-2019 period. The sample used in this study amounted to 29 companies using the purposive sampling method. The type of research used in this research is event study research with the total observation 11 days. Hypothesis testing is done by using the Wilcoxon Signed-Rank test and Paired Sample T-Test. Before this test was carried out, the normality test was conducted first with the Kolmogorov-Smirnov. This study indicates that the stock split does not positively and significantly affect stock prices and stock returns.
Keywords: Stock Split, Stock Prices, Stock Returns