Determinant Stock Split in Companies on Indonesia Stock Exchange (IDX) for the Period 2015-2019

Abstract

This study aims to determine the effect of stock prices and stock trading frequency on the company's decision to conduct a stock split. This study used 36 samples of companies on the Indonesia Stock Exchange that conducted stock splits between 2015-2019 which were incorporated in various types of industries and 36 samples of companies on the Indonesia Stock Exchange that did not conduct stock splits for the same year which were determined randomly. The data analysis method uses logistic regression analysis to determine whether the independent variables (share prices and stock trading frequency) have an influence on the dependent variable (stock split). And using the parametric paired t-test to show the role of each independent variable individually on the dependent variable. This study shows that stock prices have a significant relationship with the company's decision to do a stock split, stock trading frequency has no significant relationship with the company's decision to do a stock split, a significant difference in stock trading frequency between the two quarters before the stock split and the two quarters after. stock split and there is no significant difference in abnormal returns between the two quarters before the stock split and the two quarters after the stock split.