Analysis of the Effect of Stock Split on Abnormal Stock Return and Share Liquidity

Strong companies will not be too affected by news issues about stock splits, but several other that do splits actually experience a decline in demand for their shares. This study aims to analyze the effect of on abnormal returns and liquidity. In this study, authors use quantitative research methods with descriptive approach, because there are variables examined relationship describe characteristics or behavior population systematic accurate way regarding between studied. The listed Indonesia Stock Exchange, namely carried out 2019. Based results research, draw following conclusions: statistical tests returns, it was found market reactions occurred during day after split, first until fourth split. different Abnormal Returns before shows is significant difference average TVA