Research Paper
Year: 2018 | Month: October | Volume: 5 | Issue: 10 | Pages: 314-324
Exploration of Stock Price Reactions and Stock Trade Volumes Before and After Announcement of Cash Dividends in Indonesia Stock Exchange 2015-2016
Yupita Anggara
Postgraduate School of Malangkuçeçwara School of Economy, Indonesia
ABSTRACT
The purpose of this research is to determine the effect of cash dividend announcements on stock prices and stock trading volumes and to examine differences in abnormal return and stock trading volume before and after the announcement of cash dividends for companies that distribute cash dividends for two consecutive years listed on the Exchange Indonesian securities in 2015-2016. This research uses observation period 2 days before and 2 days after the announcement of 159 cash dividends with saturated sampling method. The collected data were analyzed through simple linear regression analysis and independent sample t test. Data analysis and hypothesis testing prove that there is no effect of cash dividend announcements on stock prices and stock trading volume and there is no difference in abnormal returns and stock trading volume before and after the announcement of cash dividends.
Key words: Abnormal Return, Stock Trading Volume, Cash Dividend Announcement.
[PDF Full Text]