| Summary: | The purpose of this empirical research is to analyze abnormal return and
abnormal trading volume activity, which positive and significant, around
announcement of stock split decision at Annual General Meeting (AGM) and
relationship between abnormal return and abnormal trading volume activity with
split factor. Sample used in this research is listed company on Indonesian Stock
Exchange and announced stock split decision at AGM in 2009-2012. Result of
this research is no abnormal return and abnormal trading volume activity which
positive and significant, surrounding announcement of stock split decision. So,
this research isn�t consistent with signaling and liquidity hypothesis. Another
result of this research is be found positive relationship with abnormal return and
split factor, but not significant. While is be found negative and not significant
with negative relationship abnormal trading volume activity and split factor.
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