Reaksi Pasar Terhadap Pengumuman Inisiasi Dividen dan Omisi Dividen Di Bursa Efek Jakarta

Abstract

This research investigate market reactions to initiations and omissions of cash dividend Dividend initiations is afirm decision topay cash dividend initially. The company omitted at least two consecutive annual cash payments and paid cash payments in the next year. Dividend omissions is afirm decision to omit cash dividend initially. The company declared at least two consecutive annual cash payments and then paid no cash payments in the next year. lhis study used sample as much 72 dividend policy change events. The samples consist of 47 dividend initiations events and 25 dividend omissions events (the period of 2002-2006). The market reactions to dividend announcements are examined using the event study methodology. The author used corrected beta to reduce bias effects on Bursa !ek Jakarta. The statistic method used to test the hypothesis is t-test. The empirical result indicate that dividend initiations announcements did not convey information to the market. There is no significant abnormal returns on event date or t-0, it means there is no market reactions. The dividend omissions announcements also did not shown market react;ons. The empirical result.find that there are negative abnormal returns but not significant.