THE EFFECT OF STOCK SPLIT ON SHARE PRICESON MANUFACTURING COMPANYREGISTERED IN INDONESIA STOCK EXCHANGE

Abstract

Stock Split is an action taken by a company to increase the number of shares outstanding. The stock price is a price formed from the interaction between sellers and buyers of shares motivated by their expectations of company profits. The population in this study amounted to 131 companies where the sample size was 14 companies.

As for the formulation of the problem in this study is "Does Stock Split affect stock prices in manufacturing companies listed on the Indonesia Stock Exchange" Based on the formulation of the problem above, the temporary hypothesis that the author put forward in this study is "Stock Split affects stock prices in companies. manufacturers listed on the Indonesia Stock Exchange "

   The research method used in this research is descriptive method using a quantitative approach. Hypothesis testing uses partial significant test (t test) and determinant coefficient test. As for the results of the research that has been done, it can be concluded that the stock split affects the stock price which can be seen from the value of t table <t count (2.178 <46.219) with a significant value of 0.00 which is less than 0.05 (0.00 < 0.05). Correlation coefficient (R) is 0.99 which indicates that the correlation between the stock split and the stock price is very strong and is strengthened by the R square value of 0.99, which means that 99% of the stock split can affect the stock price.

       Researcher's suggestion is that it is important for companies to pay attention to the fractional factor at the time of the stock split so that the stock does not experience liquidity, for further researchers to increase the number of years of research and the number of independent variables to find new findings and for investors to pay attention to the fractional factor during the stock split before buying shares.