Academia Open
Vol 7 (2022): December
Business and Economics

Stock Split Impact: Analyzing Price and Return Changes in the Capital Market
Dampak Pembagian Saham: Analisis Perubahan Harga Saham dan Imbal Hasil di Pasar Modal


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  • Inka Ayu Suhartini,
  • Wiwit Hariyanto*
Inka Ayu Suhartini
Universitas Muhammadiyah Sidoarjo, Indonesia
Wiwit Hariyanto
Universitas Muhammadiyah Sidoarjo, Indonesia *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/acopen.7.2022.3305
Published December 31, 2022
Keywords
  • Stock Split,
  • stock prices,
  • stock returns,
  • capital market,
  • trading range theory
How to Cite
Suhartini, I. A., & Hariyanto, W. (2022). Stock Split Impact: Analyzing Price and Return Changes in the Capital Market. Academia Open, 7, 10.21070/acopen.7.2022.3305. https://doi.org/10.21070/acopen.7.2022.3305

Copyright (c) 2022 Inka Ayu Suhartini, Wiwit Hariyanto

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study investigates the effect of stock splits on stock prices and stock returns in the capital market. Drawing from the trading range theory and signaling theory, the research analyzes daily data over a five-year period (2015-2020) for 31 purposively sampled companies. The analytical methods employed include descriptive statistics, normality tests, and paired sample t-tests. The findings reveal significant differences in both stock prices and stock returns before and after stock splits. The results emphasize the significance of stock splits as a potential catalyst for financial changes in the market, holding implications for investors and market participants in their decision-making processes.

Highlights:

  • The study analyzes the impact of stock splits on stock prices and returns in the capital market.
  • The research focuses on the trading range theory and its implications for stock splits.
  • The findings highlight significant differences in stock prices and returns before and after stock splits, emphasizing the financial effects of these events in the market.

Keywords: stock split, stock prices, stock returns, capital market, trading range theory.

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