The Effect of Stock Split Announcement: A Comparative Analysis between Spring-Up and Spring-Down Company at Indonesia Stock Exchange.
Tt{E EFTEICI OT STOCh SPLI I AN O['\CEMXNT: A
COMPARATrvE ANAIYSTS BETWEEN SPRINC-UP AND
SPRING-DOWN COMPAI\IY AT IA-DONESIA STOCK
EXCIIANGN
l
lwsis
i
ttbnited it potjal fu$ltte't aftte reqarenetu Jor tte Baehetot
D?gry? n Vrtuz?'n?nt D p-aq?nt ra ul^ lt r atuai
BJI
MrmgcDctrt Prcgr.Dr Sludy
Facu lry of Elo
noni€
r..rrn Fadms r 21 Fcbn t9sri b) \ona orang lua sy@sn drr
c) frrulrA Lkoromidt n'nsan \1an4emer e) \oBp Oj
09.111
Juh 1003 e) Picdikar Lulus: sdear Mernusk lj) rpKJ or i) LaN
bulm h) almar or.n!'rnr
Raden seteh cs alnplco
l5
llt
I
Ihe Eflect
oJ
Stuk
S!1tit
\o
ln
ou cenpht: A Conpanlh'e Anabsk betuti
Dov coapar! otlndo"esit Sto.k tj\.hdrse
!,tarus! trdt ttDL liN
t'ehI rnh r1s. Dr. liI! I H !s", 5la. MU.1
SpntF,U? aur Sptins-
ll
-n
r. "
.
h, . t _,^.
r. t-..!
.itrr nnrpan) at tDt ftw, t.ntpatr\ daNi h.:tt.n hrurku h hbk tutw qt eq ,t;t..,t
1.h? anid,t,
':, ne^rtn! tlr. nattut dtn b) .at.tt.tu\ ttr, abrunndt
^ ht" tot u.h ahtutr la rEitnh'di;\^
^
1...
'
t,
t,J.
t\pt'
"';
'"
''''" "
lncrcelt.llt tnultrc\ln krt thut \ttry.q .orpun, tas qb.ku rJ ntu.kc1Lv. v t,,
:nl c.npunr. on rn,t.tp r.tnpunf ttl ,tutkd t.ut t hr!,tow|w,vh. dt ht t)od nt ;)V,r"l:
ul1tl
.t !1 ., 1 ..1
,.d ,t \....t t \t.r t
i t u/i0 r..ktplt 0" nnLj dn.
^utE olabn$
Si.inslrehh drpenahaikan
ul
'"
ft1,t"
dr depansldane pensujidan
dtn\lllkan lL
us
p.da langgal 22Ju|2008
Abnrak tclah disex!ur olch nencutr:
0,.-t'""**f
\airiaTdeB
(:
Lru dnVanallmln Dr tlar
'd
llu'niui lel.h
l \ nr R.J,SE
Msl
nendanar ke f_qq1lqlblrglsrtas dan ncndapar Nom.r Alunnus
P91!e9j!\!,lrulll!1!$ltlt!
Tsndr r,n.rn
Basically. every corprny always .cqtrnc
fu'd i'r dctia),jig
opDmtdnrl actvily the lrnd can be ohlained JioD sone solrce
insidc
olcomFnyi
or'compdy) in
:4o
p
bl jc
olNr eqlirl.
Lhe rbrm
rr.m
and retlincd camingorothersolrce (.LGjde
of loan / debr rioh
LonNn! ir fie eftnn
{rhj\
irs
oLLrer
pa4y. Besidcs
t.d.
tnr a
of addinS irs opemtiona adivny, tnnd crn he
obrained dnoush sale olsrock ro inve$or as
o$'er otcapitat.
Capi6lmarker trscd b]companyas mcdia in selting irs $ock b pubtic
The
sro*d olcapilal
and economic luncrion
Darkcr as inve$merr apprarus innilule has moneky
rhrl flogE$ivcl'
adaccun,ulaloroltl.d(HusnaD,
J99,1:
necded by sociery as an aLteaalire
l)inRahayu(2006).Inirsecofo'nic
functioD,.apihl markcr p.ovide5 t:lcility ro remove tirnd ot
sidd
*ho!
haviie exce$ of fund) ro
6,'"ysl
/c,l"i
(pafry or
(fund pmpd paniet. uy
invesling fund thal the) have, lender exp.cls lo gcr a gain trom borowcr.
Availabilny ol aund liom outsidci dolivale drcJr ro
*oitiie tbrcohpan)\ operaii'rgtund
li
i.rei
wnhout havc ro
ih financial tuncrion. capibtmarker
p.oridine tuid wid.ur have to iivolvd diEcly
h o*ncrship.t
rcal assr
which nccdcd ro rhat invedmeir
Fhictudion
olsi(k pricc in capib
'na
cr can inrltrence by level
suppl] and demand toward the $.ck price Bcsidc rhar. ihe intirmarion
slek c\chdge
such as lhe (ondnion
.f li rn(
pldum:nle ot compsv
'
irl
i,fiuctrc
hc
ier
pricc wh ich is b.4ains ir $e
ma*cr J vfi.us other
issue!which is intlrrcncc .ompan! protirabiity in ihe tururc dncdL].
SrNk pnce.l.oD,paiy ar ccrhin level cai bccomc lery hien. whjch
.an idcndfied Lom height ases caming t)ersharc (EPS). This inanercaused
by rhar pcninLir coDpm) has tendcnc) io nrarei a bcxcr ptuspecr in lne
lururt
So
rhri breained $ock has hlgher price t;or company. rhcerisrence
ol
incrcasirgsrock price.dsessed as beneticiatcondnjoi. bur oD 6e orhersida
invenor claimed io releas hiehc. capihl addirion ro
pu,chbj,s of conpdys
d.
inveshrent tlnough
srock.
llighe. incre$iig ol
i.ck f.c., *itt
causc decEasing rcquesr
in thc cnd cm causc rhc eook
pri*
ol
becone sl4icj
Desreasine reque$can bc catrsed by more invenor
ar rhc hish price. csoeciallr
individuatitrvejor rhar
ln li(r, more iivcyou rlm ro buy other..dpany
'lo rvoid rpneaercc coddirion.
cohp y is replece $ock pri(
hencc
etton lhar
ar cenain rerch. Or
needs
lo bc donc by
jr odjf worJ\
co,npafy
has ro rry !o desccnd fte nock at increnine price. qhich drrRs iave$or
cmhusi m for huyinS. orc oflne
rhar $ocks
sreps ralen
s.ld can dmqs inv.norenttrusiasm
b! co'npdy in orJer b,nake
is
th.oughr/,.*rt
Mc Coueh and Fma {t991) aUimine rh.r rhc rnain
objcsrive
cdnduciing stock splir h ro plr dre eock in morc popular com,nerce glrarion
lpop zdkt n-s.), Ihec
price sillpush invcnor
b
ifvotving mdy buyc . Achievlbtc aock
coDdud ransaciion otrhar
idk
thinanerwilt
CIIAPTER V
CONCLUSION AND RECOMMONDATION
Ascxplaincd in $c pruviouschdprcr, rheobjectiveoltheEsearch is to Cet
cmpnical cvidcncc about lhe
compadies
rl lDX. Ii
cfl4t
oa nock split annolncenrn{ among lGted
car be trsd as coisiderarion base
tu
any pary hjfoft
Accordins lo $c dala Mallsisand result !5at have beer explained in the
pftvious chaptci rhc.onclusion. rccdmmendation. imDlication and Limitarion of
theresedhwill b€erplaincddlbllorvl
l. Sr k spln announccmenL Nhich is conducred by sprine up
company
lor yea6 of
200.1-2007,
sbli$ically give signiiicant
dilieFnce of Darket reacrion- both belbre and alter event date.
Il!
proved
empi calLyas totow*
Significanr valLeolCAAR=0.001 les than sigriticane level (d
2.
Srock
spljl announEncnr, which is conducrcd by ering down
compmy
iir
lea6 ol
2004-2007,
n.rhtiallt live
silnifcant
diftaErce of D&ket readion. bo$ bcforc and .nei cvert dare.
I
r\
provcd
cm
piricallt
as
lollowsl
Sisni'icanr val,'c orAAR = 0.00a bss ihan si$ificance lever (o
REFERENCI:S
Agung Nugbho, Buono, 2001. JtrzleAr Jtl Menitih Metatu Statdl,t Pen
D.zg,r,tP.tt Andi: Yoalak.nd
titit,
rmiria and Krinijrdi- 2005-,a,Elhk Kandtnso. Inlunasi to" Ele\ Inia rndBti
P?zgrn.nor Stock Split padt Petusahtaa Ben,nh,t' da, p.t6thaan
TidaL Ae unbuh, Jufr^l Ek nonidan Bkdis loloresia. VoLune20.No L
ont
Stock Sptit. lhe
Brcnnan. M J. and T E C.peland,lrqA,9otk S?1i1, Stock hices and
Joumal olFinancial Ecodomics
pp.3l-10!
Trun$dio. C6t,
Asquirh. Healy Paul and Palepu Krishn4 1989- Eanihgs
ccounring Revic$. July, p187.
ll,
llriglram, Etrgede F dnd tloves- Plil\p R,20A2,Iztemediate FiMn.iut Mana|enent,jth
cdirion,Sourh-\veiem: Thomsor L.aning lnc n
Copelsnd- lhoms E 1919. Li|uidiq ChanAes Fouowi,zS Sroc4.t?/ts. rhc Joumat of
Finmce. March I l5 14l
Husn.n. Suad. 1994, Dzsa.,Dasrt feoti Podofutia Dad A&tkk,Szk,,irzs 2"i cditior,
YOEYAKAfui UPP AMIT YKPN.
lndah (umiawati. 2003,
,,lrariis KanlurAzn Inlothasi Statk Split dtn Liksidilt
Sohom: Studi Enpins padt Nobslnctonoc rrrdt g. Jumat Rise!
AkuntMsi lndonEsi( Vol rt, No,l.
Jo8iyanto. 2003. T.oti Ponololio Dan Analisk lays.lJ4ri. Edhi K.riea. yogla[atu:
Kadiyala, Padna anJ Vetsuypens,Michacl, 2002 ,t.e Stoc* Sph Crcdibte SEnat .l
Evidcn€ Iron Shod lnreresl Dsla,linan.irl Msnagement. Sprins,ll. p.:l I
COMPARATrvE ANAIYSTS BETWEEN SPRINC-UP AND
SPRING-DOWN COMPAI\IY AT IA-DONESIA STOCK
EXCIIANGN
l
lwsis
i
ttbnited it potjal fu$ltte't aftte reqarenetu Jor tte Baehetot
D?gry? n Vrtuz?'n?nt D p-aq?nt ra ul^ lt r atuai
BJI
MrmgcDctrt Prcgr.Dr Sludy
Facu lry of Elo
noni€
r..rrn Fadms r 21 Fcbn t9sri b) \ona orang lua sy@sn drr
c) frrulrA Lkoromidt n'nsan \1an4emer e) \oBp Oj
09.111
Juh 1003 e) Picdikar Lulus: sdear Mernusk lj) rpKJ or i) LaN
bulm h) almar or.n!'rnr
Raden seteh cs alnplco
l5
llt
I
Ihe Eflect
oJ
Stuk
S!1tit
\o
ln
ou cenpht: A Conpanlh'e Anabsk betuti
Dov coapar! otlndo"esit Sto.k tj\.hdrse
!,tarus! trdt ttDL liN
t'ehI rnh r1s. Dr. liI! I H !s", 5la. MU.1
SpntF,U? aur Sptins-
ll
-n
r. "
.
h, . t _,^.
r. t-..!
.itrr nnrpan) at tDt ftw, t.ntpatr\ daNi h.:tt.n hrurku h hbk tutw qt eq ,t;t..,t
1.h? anid,t,
':, ne^rtn! tlr. nattut dtn b) .at.tt.tu\ ttr, abrunndt
^ ht" tot u.h ahtutr la rEitnh'di;\^
^
1...
'
t,
t,J.
t\pt'
"';
'"
''''" "
lncrcelt.llt tnultrc\ln krt thut \ttry.q .orpun, tas qb.ku rJ ntu.kc1Lv. v t,,
:nl c.npunr. on rn,t.tp r.tnpunf ttl ,tutkd t.ut t hr!,tow|w,vh. dt ht t)od nt ;)V,r"l:
ul1tl
.t !1 ., 1 ..1
,.d ,t \....t t \t.r t
i t u/i0 r..ktplt 0" nnLj dn.
^utE olabn$
Si.inslrehh drpenahaikan
ul
'"
ft1,t"
dr depansldane pensujidan
dtn\lllkan lL
us
p.da langgal 22Ju|2008
Abnrak tclah disex!ur olch nencutr:
0,.-t'""**f
\airiaTdeB
(:
Lru dnVanallmln Dr tlar
'd
llu'niui lel.h
l \ nr R.J,SE
Msl
nendanar ke f_qq1lqlblrglsrtas dan ncndapar Nom.r Alunnus
P91!e9j!\!,lrulll!1!$ltlt!
Tsndr r,n.rn
Basically. every corprny always .cqtrnc
fu'd i'r dctia),jig
opDmtdnrl actvily the lrnd can be ohlained JioD sone solrce
insidc
olcomFnyi
or'compdy) in
:4o
p
bl jc
olNr eqlirl.
Lhe rbrm
rr.m
and retlincd camingorothersolrce (.LGjde
of loan / debr rioh
LonNn! ir fie eftnn
{rhj\
irs
oLLrer
pa4y. Besidcs
t.d.
tnr a
of addinS irs opemtiona adivny, tnnd crn he
obrained dnoush sale olsrock ro inve$or as
o$'er otcapitat.
Capi6lmarker trscd b]companyas mcdia in selting irs $ock b pubtic
The
sro*d olcapilal
and economic luncrion
Darkcr as inve$merr apprarus innilule has moneky
rhrl flogE$ivcl'
adaccun,ulaloroltl.d(HusnaD,
J99,1:
necded by sociery as an aLteaalire
l)inRahayu(2006).Inirsecofo'nic
functioD,.apihl markcr p.ovide5 t:lcility ro remove tirnd ot
sidd
*ho!
haviie exce$ of fund) ro
6,'"ysl
/c,l"i
(pafry or
(fund pmpd paniet. uy
invesling fund thal the) have, lender exp.cls lo gcr a gain trom borowcr.
Availabilny ol aund liom outsidci dolivale drcJr ro
*oitiie tbrcohpan)\ operaii'rgtund
li
i.rei
wnhout havc ro
ih financial tuncrion. capibtmarker
p.oridine tuid wid.ur have to iivolvd diEcly
h o*ncrship.t
rcal assr
which nccdcd ro rhat invedmeir
Fhictudion
olsi(k pricc in capib
'na
cr can inrltrence by level
suppl] and demand toward the $.ck price Bcsidc rhar. ihe intirmarion
slek c\chdge
such as lhe (ondnion
.f li rn(
pldum:nle ot compsv
'
irl
i,fiuctrc
hc
ier
pricc wh ich is b.4ains ir $e
ma*cr J vfi.us other
issue!which is intlrrcncc .ompan! protirabiity in ihe tururc dncdL].
SrNk pnce.l.oD,paiy ar ccrhin level cai bccomc lery hien. whjch
.an idcndfied Lom height ases caming t)ersharc (EPS). This inanercaused
by rhar pcninLir coDpm) has tendcnc) io nrarei a bcxcr ptuspecr in lne
lururt
So
rhri breained $ock has hlgher price t;or company. rhcerisrence
ol
incrcasirgsrock price.dsessed as beneticiatcondnjoi. bur oD 6e orhersida
invenor claimed io releas hiehc. capihl addirion ro
pu,chbj,s of conpdys
d.
inveshrent tlnough
srock.
llighe. incre$iig ol
i.ck f.c., *itt
causc decEasing rcquesr
in thc cnd cm causc rhc eook
pri*
ol
becone sl4icj
Desreasine reque$can bc catrsed by more invenor
ar rhc hish price. csoeciallr
individuatitrvejor rhar
ln li(r, more iivcyou rlm ro buy other..dpany
'lo rvoid rpneaercc coddirion.
cohp y is replece $ock pri(
hencc
etton lhar
ar cenain rerch. Or
needs
lo bc donc by
jr odjf worJ\
co,npafy
has ro rry !o desccnd fte nock at increnine price. qhich drrRs iave$or
cmhusi m for huyinS. orc oflne
rhar $ocks
sreps ralen
s.ld can dmqs inv.norenttrusiasm
b! co'npdy in orJer b,nake
is
th.oughr/,.*rt
Mc Coueh and Fma {t991) aUimine rh.r rhc rnain
objcsrive
cdnduciing stock splir h ro plr dre eock in morc popular com,nerce glrarion
lpop zdkt n-s.), Ihec
price sillpush invcnor
b
ifvotving mdy buyc . Achievlbtc aock
coDdud ransaciion otrhar
idk
thinanerwilt
CIIAPTER V
CONCLUSION AND RECOMMONDATION
Ascxplaincd in $c pruviouschdprcr, rheobjectiveoltheEsearch is to Cet
cmpnical cvidcncc about lhe
compadies
rl lDX. Ii
cfl4t
oa nock split annolncenrn{ among lGted
car be trsd as coisiderarion base
tu
any pary hjfoft
Accordins lo $c dala Mallsisand result !5at have beer explained in the
pftvious chaptci rhc.onclusion. rccdmmendation. imDlication and Limitarion of
theresedhwill b€erplaincddlbllorvl
l. Sr k spln announccmenL Nhich is conducred by sprine up
company
lor yea6 of
200.1-2007,
sbli$ically give signiiicant
dilieFnce of Darket reacrion- both belbre and alter event date.
Il!
proved
empi calLyas totow*
Significanr valLeolCAAR=0.001 les than sigriticane level (d
2.
Srock
spljl announEncnr, which is conducrcd by ering down
compmy
iir
lea6 ol
2004-2007,
n.rhtiallt live
silnifcant
diftaErce of D&ket readion. bo$ bcforc and .nei cvert dare.
I
r\
provcd
cm
piricallt
as
lollowsl
Sisni'icanr val,'c orAAR = 0.00a bss ihan si$ificance lever (o
REFERENCI:S
Agung Nugbho, Buono, 2001. JtrzleAr Jtl Menitih Metatu Statdl,t Pen
D.zg,r,tP.tt Andi: Yoalak.nd
titit,
rmiria and Krinijrdi- 2005-,a,Elhk Kandtnso. Inlunasi to" Ele\ Inia rndBti
P?zgrn.nor Stock Split padt Petusahtaa Ben,nh,t' da, p.t6thaan
TidaL Ae unbuh, Jufr^l Ek nonidan Bkdis loloresia. VoLune20.No L
ont
Stock Sptit. lhe
Brcnnan. M J. and T E C.peland,lrqA,9otk S?1i1, Stock hices and
Joumal olFinancial Ecodomics
pp.3l-10!
Trun$dio. C6t,
Asquirh. Healy Paul and Palepu Krishn4 1989- Eanihgs
ccounring Revic$. July, p187.
ll,
llriglram, Etrgede F dnd tloves- Plil\p R,20A2,Iztemediate FiMn.iut Mana|enent,jth
cdirion,Sourh-\veiem: Thomsor L.aning lnc n
Copelsnd- lhoms E 1919. Li|uidiq ChanAes Fouowi,zS Sroc4.t?/ts. rhc Joumat of
Finmce. March I l5 14l
Husn.n. Suad. 1994, Dzsa.,Dasrt feoti Podofutia Dad A&tkk,Szk,,irzs 2"i cditior,
YOEYAKAfui UPP AMIT YKPN.
lndah (umiawati. 2003,
,,lrariis KanlurAzn Inlothasi Statk Split dtn Liksidilt
Sohom: Studi Enpins padt Nobslnctonoc rrrdt g. Jumat Rise!
AkuntMsi lndonEsi( Vol rt, No,l.
Jo8iyanto. 2003. T.oti Ponololio Dan Analisk lays.lJ4ri. Edhi K.riea. yogla[atu:
Kadiyala, Padna anJ Vetsuypens,Michacl, 2002 ,t.e Stoc* Sph Crcdibte SEnat .l
Evidcn€ Iron Shod lnreresl Dsla,linan.irl Msnagement. Sprins,ll. p.:l I