Abstract
This paper aims to analyze the market reactions on corporate actions in the form of split-up, reverse split, right issue, and mergers and acquisitions in growing and non-growing energy consuming companies in Indonesia. The market reaction is analyzed based on stock price, trading volume, and abnormal returns movements using paired sample t-tests from the results of the event study for five days before and after corporate actions in the form of split-up, reverse split, right issue, and mergers and acquisitions. The results showed that stock prices reacted positively on the split-up in growing energy consuming companies, while in non-growing energy consuming companies, stock prices did not react significantly. However, the abnormal returns of growing and non-growing energy consuming companies both showed a negative movement, while the trading volumes did not react significantly. This paper specifically analyzes the market reaction on corporate actions in growing and non-growing energy consuming companies to provide interesting insights about the different reactions given by the market to corporate actions carried out by the companies with different growth categories. Keywords: Market reaction, corporate action, split-up, reverse split, right issue, merger and acquisition JEL Classifications: D81, P48, Q35, Q42 DOI: https://doi.org/10.32479/ijeep.10737
Highlights
The companies along with its industrial chain are one of the most energy consuming in Indonesia
Regarding market reaction on split-up in non-growing energy consuming companies, it is evident that there are no significant differences in stock prices before and after the split-up in non-growing energy consuming companies
In the relationship between market reaction on reverse split in growing company, the t-test results did not find any significant differences in stock prices, trading volumes, and abnormal returns before and after the reverse split in growing company
Summary
The companies along with its industrial chain are one of the most energy consuming in Indonesia While their operation is largely based on the availability of energy, its position in Stock Exchange is dependent on its performance, and is sometimes accentuated by its operation such as energy efficiency and oil prices as some indicator of its price in Stoc Exchange. 0,024 trillion with 619 listed companies (IDX, 2018) This showed that during the last 10 years, the market capitalization value and the number of issuers on the IDX have grown by 552.18% and 56.31%, respectively, from IDR.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Energy Economics and Policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
