EFFECT OF DIVIDEND ANNOUNCEMENT ON AVERAGE ABNORMAL RETURN: EMPIRICAL STUDY ON LQ45 COMPANIES PERIOD 2008-2011

• Main Author: (NIM : 29111004), HANDI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18582
• Institution: Institut Teknologi Bandung

This research was conducted to see a significant effect of Average Abnormal Return on dividend announcement (using event study methodology), based on stated-owned and private companies that entered in LQ45 companies list. Furthermore, after knowing the impact of dividend announcement effect then analyze the dividend policy based on the company that has a significant effect. The analysis dividend policy based on banking and non-banking sector. This research is conducted in 4 years periods 2008-2011, to see the effect of global crisis in that sector.This research is an event study with 41-days trading periods based on the observation of testing stock price 20 days before the dividend announcement date, when the dividend announcement and 20 days after the dividend announcement date. The testing statistical significance using the null hypothesis that Average Abnormal Return before and after the dividend announcement doesn’t have a significant effect. If the result statistic less than alpha 0.05%, reject the null hypothesis and vice versa.The results of this research concluded that the state-owned company has a significant impact on the dividend announcement through the cumulative average abnormal return is smaller than the private. Based on the analysis of dividend policy, banking-sector’s net income increased consistently every year despite the global crisis and dividend policy are influenced by government policies because the dividend contributing state budget.