Analysis of the Difference in Stock Prices and Stock Returns Before and After Stock Split

Abstract

This study aims to determine the difference between stock prices and stock returns before and after the stock split. The capital market provides investment facilities for investors who have excess funds to be able to invest their money in the hope of getting a return. The stock split is carried out on the basis of two theories, namely trading range theory and signaling theory. Research data is daily data for a five-year period (2015-2020). The sampling method used was purposive sampling, 31 companies that met the criteria were selected as samples. The analytical method used in this research is descriptive statistical test and normality test and paired sample t-test. The results of this study indicate that there is a significant difference in stock prices and there is a significant difference in stock returns before and after the stock split.