| Summary: | Reverse split announcement is one of information that can lead to
abnormal return of a stock. To see that it is done research that aims to identify
whether the impact of announcements before and after the reverse split PT
Smartfren there a significant difference in abnormal return. This study uses event
study approach, where observations of abnormal return during the five days
before the announcement of the reverse split, reverse split at the time, and five
days after the announcement of the reverse split. This research is a case study that
examines only one company, PT Smartfren Tbk. The data used in this study is
secondary data in the form of daily stock price data when closing and daily stock
price index. This test using paired sample t-test for different test before and after
the reverse split.
The results of this study indicate that there is no significant difference
between the abnormal returns before and after the reverse split announcements
caused investors to respond the same to the reverse split announcement, another
alleged reverse split information may have been leaked before the announcement
occurs. Leak may be caused by the General Meeting of holders of Shares carried
out long before the day of the announcement and the news that the reverse split
will be implemented so that the overall market had anticipated when they listed
with a nominal price of a new one.
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