MARKET REACTIONS ON CORPORATE ACTIONS IN GROWING AND NONGROWING ENERGY CONSUMING COMPANIES

Andini Nurwulandari, Hasanudin Hasanudin, Melati Melati
2021 International Journal of Energy Economics and Policy  
This paper aims to analyze the market reactions on corporate actions in the form of split-up, reverse split, right issue, and mergers and acquisitions in growing and non-growing energy consuming companies in Indonesia. The market reaction is analyzed based on stock price, trading volume, and abnormal returns movements using paired sample t-tests from the results of the event study for 5 days before and after corporate actions in the form of split-up, reverse split, right issue, and mergers and
more » ... e, and mergers and acquisitions. The results showed that stock prices reacted positively on the split-up in growing energy consuming companies, while in non-growing energy consuming companies, stock prices did not react significantly. However, the abnormal returns of growing and non-growing energy consuming companies both showed a negative movement, while the trading volumes did not react significantly. This paper specifically analyzes the market reaction on corporate actions in growing and non-growing energy consuming companies to provide interesting insights about the different reactions given by the market to corporate actions carried out by the companies with different growth categories.
doi:10.32479/ijeep.10737 fatcat:rcgaywrph5eq3bp742mtixmszq