IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v8y2018i5p682-690id1703.html
   My bibliography  Save this article

Does Stock Split Influence to Liquidity and Stock Return? (Empirical Evidence in the Indonesian Capital Market)

Author

Listed:
  • R. Adisetiawan
  • Atikah

Abstract

Research on stock splits has frequently been undertaken. The results vary, but fundamentally can be classified into two groups. First, the stock split is purely ”cosmetic”. Second, the stock split has a real effect on stocks. The difference between these opinions raises controversy. The purpose of this study is to examine whether stock splits influence stock liquidity and return of an individual stock as well as in a group of stocks as a portfolio. Overall, the results of this study show that stock splits did influence stock price, trading volume and bid-ask spread but did not influence stock risk and abnormal return from the point of view of an individual stock as well as in a group of stocks as a portfolio. The test of a relationship between bid–ask spread and stock price, trading volume and stock risk for each stock shows that all three variable did not significantly affect the bid–ask spread. On the other hand, the test of a relationship in a portfolio reveals that only stock prices significantly affect the bid-ask spread.

Suggested Citation

  • R. Adisetiawan & Atikah, 2018. "Does Stock Split Influence to Liquidity and Stock Return? (Empirical Evidence in the Indonesian Capital Market)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(5), pages 682-690.
    • Handle: RePEc:asi:aeafrj:v:8:y:2018:i:5:p:682-690:id:1703
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1703/2516
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/1703/3670
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Baharudin Kadir & Mohd Farid Shamsudin, 2019. "A Case Study Analysis of Typhidot: An Example of Market-Oriented R&D Commercialization in Malaysia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 75-81, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:8:y:2018:i:5:p:682-690:id:1703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.