Changes of Return of Shares Before and After Ex-Dividend Date: Case Study in Indonesia

Investors usually look for information on a company before they decide to invest their capital in the company or not, either in the form of shares or in other forms of investment. This study used 27 companies belonging to the group of stocks 50 Biggest Market Capitalization. The aim of the study to...

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Bibliographic Details
Published in:Review of Integrative Business and Economics Research 2013-01, Vol.2 (1), p.511
Main Authors: Novianti, Mega, Medyawati, Henny, Yunanto, Muhammad
Format: Article
Language:English
Subjects:
Abnormal returns
Capital markets
Corporate profits
Dividend policy
Financial services
Investments
Rates of return
Stock exchanges
Stock prices
Stockholders
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Summary:Investors usually look for information on a company before they decide to invest their capital in the company or not, either in the form of shares or in other forms of investment. This study used 27 companies belonging to the group of stocks 50 Biggest Market Capitalization. The aim of the study to analyze the effect of dividend announcement on stock price changes before and after the ex-dividend date on the Indonesia Stock Exchange (IDX) in the period January to December 2010 at the IDX. Based on the results of data processing is known that announcements of dividend increases influence on stock returns before and after the ex-date dividend in IDX. It is characterized by the average significant positive abnormal return on day t-4. The dividend reduction announcement does not affect the stock returns before and after the ex-dividend date on the IDX. It is shown by the presence of a significant negative abnormal return on day t +9.
ISSN:2414-6722
2304-1013