The purpose of this research (thesis) is to analyze the effect of stock split
towards stock liquidity, stock return, and profitability of a company that is listed in
Indonesia Stock Exchange (IDX).
This research was categorized as event study. The research subjects were all
corporates listed at Indonesia Stock Exchange. Purposive sampling covered 43
issuers companies in stock split during period of 2012-2016. Parametric analysis
tools and non-parametric analysis tools to test hypothesis in this research were
paired sample t-test, Wilcoxon Signed Rank Test and simple linear regression with
dummy variables with the event window is 5 days before and 5 days after, and at
the time of stock split.
The results of this research showed the stock split give positive effect and a
significant difference before and after stock split, and at the time of stock split of
Trading Volume Activity and Average Abnormal Return, but there is negative
effect with no significant difference in profitability of Return On Assets and Return
on Equity.


Supervisor: Roy Sembel