The influence of information not only for company itself which announcement company policy like financial statement, dividend or others, but also the other company in same industry or same market. The purpose of the research was to investigate the information content and intra industry effect of dividend announcement. The analysis include four aspects: information content, risk (beta), intra industry effect of dividen by big and small size firms, and impact firm characteristics to abnormal

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... n nonreporter firm.The analysis for information content, risk (beta), intra industry effect used event study and for impact of firm characteristics used multiple linier regressions.Result of this research showed that there was information content around the date of dividend announcement, but there was no difference between abnormal return by big and small size firms. The difference between beta before and after dividend announcement is not significant. The difference between beta big size firms and small size firms after dividend announcement is not significant. The intra industry effect of dividend announcement showed abnormal return with two effects: competitive effect and contagion effect. The firm specific characteristics used in this research were not significant to explain the fenomena intra industry. Keywords: competitice effects, contagion effects, dividend, information content, intra industry effect. Pengumuman pembagian dividen merupakan salah satu kebijakan perusahaan yang selalu dipublikasi. Pengumuman pemberian dividen seringkali di-anggap sebagai pengumuman yang memberi insen-tif positif bagi pergerakan harga saham perusahaan yang melakukan pengumuman. Ini menunjukkan bahwa pengumuman tersebut memiliki kandungan informasi. Reaksi akan semakin cepat apabila