Stock split analysis on price and trading volume in Indonesian Stock Exchange

Stock split in not a new issue in Indonesia Stock effect.There are many controversies are found in the research results about the impact of the corporation action on the company value and stock trading volume.This study aims to analyze the impact of stock split on stock price and stock trading volume.Four companies incorporated in LQ- 45 of Indonesia Stock Exchange become the sample of this research.One sample t-test and paired sample t-test are used as the statistical analysis method.The result shows that corporation action of stock split positively impact on stock price, but negatively impact on stock trading volume.The contribution of this research for knowledge management is to add data base and reference in managerial field which then can be used to make investment decisions, especially in long-term financial assets.