出版社：LLC “Consulting Publishing Company “Business Perspectives”
摘要：Signaling theory assumes that it is necessary to signal investors to how they perceive company's prospects.One of them is dividend announcements.The announcement of dividends is predicted to be a signal for investors in the investment decision making process.This study aims to determine and analyze the effect of dividend announcements,both increases and decreases in dividends,on stock returns.This study is in?tended to find empirical evidence about market reactions based on signaling theory in Indonesia Stock Exchange on the period 2017.The analysis of this study uses the event study method and hypothesis testing carried out using different test paired sample t-test.The results of this study prove that the market reacts to the announcement of dividends.The market reaction is indicated by the value of abnormal returns,namely abnormal returns in the positive direction when the announcement of dividend in?creased and abnormal returns in the negative direction when the announcement of dividend decreased.The value of abnormal returns in a positive direction reflects the company's performance in good condition,and vice versa.This result indicates that dividend announcements are a signal and contain information relevant to investors in the investment decision making process.
关键词：signaling theory;announcement of dividends;stock return
