Analysis Market Reaction to Announcement Dividends in Public Companies

Abstrak

Study This aim For analyze capital market reaction to announcement dividends in the company publicly listed companies on the Indonesia Stock Exchange ( IDX). Dividends viewed as one of the form distribution unrealized profit​ only functioning give profit to holder shares , but also contains information important about prospects and performance company . With use event study approach , research This test whether there are abnormal returns around date announcement dividends that reflect investor response to information The data used in the form of report announcement dividend from a number of company public during period certain , with coverage diverse sectors . Data processing is carried out through calculation of expected returns using a market model, then compared to with actual return for obtain abnormal returns. Next , it is carried out testing on cumulative abnormal return (CAR) in range window time before and after announcement dividends . Research results expected can show whether announcement dividend give signal positive and negative to price shares , at the same time prove level efficiency information on the Indonesian capital market. In general theoretical , research This give contribution to literature about theory signals , efficient market hypothesis , and policy dividends . In practical , results study beneficial for investors as base taking decision investment , for management company in determine policy strategy dividends , as well as for regulators to evaluate transparency and efficiency of the capital market. With Thus , research This confirm that announcement dividend still become factor important things that influence dynamics price shares in the capital market.