Market Reaction on Stock Split 2020-2023 in ASEAN
Abstract
The purpose of this research was to examine the capital market's response to stock splits by comparing the situation before and after the split. In all, 176 different firms' data sets were mined for this study from the Indonesia Stock Exchange, Yahoo Finance, and Investing.com. The first step in data analysis was to do a normality test to see if the data follows a normal distribution. The analysis is carried out using a Paired Sample T-test if the data is determined to have a normal distribution. But the Wilcoxon Signed Rank Test comes into play if the data turns out to be non-normally distributed. With the help of SPSS software version 27, all statistical analyses were conducted. This research demonstrates that capital market responses to stock splits vary among ASEAN countries. Abnormal Return (AR), Price Earnings Ratio (PER), Trading Volume Activity (TVA), and stock prices vary widely throughout ASEAN nations. But the market response is the same in other nations as well. By providing a theoretical framework for future studies in this field, this research hopes to deepen and expand our knowledge of how corporate activities, especially stock splits, affect the capital market. The research aims to offer issuers and investors useful insights into the capital market effects of stock splits, which is a practical implication. Using information from corporations in ASEAN nations (Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines) that had stock splits in 2020 and 2023 is what makes this study unique.
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DOI: https://doi.org/10.17509/jaset.v17i1.76040
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