Share Market Response to the

Announcement of Dividend Payment Plan in

the Food and Beverage Sector Registered
in Indonesia Stock Exchange
Faizal Aga Hamanda, Mursidi, Warsono (2021)
GROUP MEMBERS:
1.. AS TIKA TAM ALA
2. BRANDON ARFANDO
3. . ENJ ELINA S IHITE
4. ESRA SUPRIYANI
5. . RULY NA S T
Conten
Background of the
t study

The
Problems

Variable and Measurment

Resul
t
 Dividend policy is a decision
o f d i v i d et no d s tdoe tdei rs m
t riinbeu t et d
he to inv amount
D i vbi ed e n d s d i s t r iebsut toer ds by the compa
ny can be f i x e d (u n c h a n g e d )o r c ha
nge from dividends
previously shared ( c a n i n c r e a s eo r
decrease).

Basedon the supervisory framework,

the market
reaction to the d i v i d e n da n
nouncement policy seems to be used
b
I ny o t h e w o r d s , a ni n c r e a s ei n d i v i d e n d s i s c o n s i d e
ir na vg eosot or resd assi gan a l s i g n a l t h a t thec
o
dm
g o op da fnoy r' st hf u ct o
umr ep ca on ny d iitni o nt sh e f u t u r e ,w ial nl d v i c e v
e d e c r e a s eb ee r rs ea l, a ta i vd ei vl yi du en nf d
a sv o irsa cbol n
e s. i d e r e d a
in co bad signalfor

Background mpany.
Problems
I n o r d e rt o d r i v e c o m p a n y g r o w th , it isdi
fficult for

management to decide w h e th e r to pa

y d i vi d e n d s o r w i th h o l d p r o f i ts a n d rei

n ve s t i n p r o f i ta b l e p r o j e c ts .

Therefore, an e m p ir ic al s u r ve y was co

n d u c te d using th e e ve n t s u r ve y m e th o d

which aims to d e te r m i n e th e

reaction to e ve n ts w h o s e i n f o r m a t i o n i s publis

hed as an announcement f o r th e p l a n to p
 D IV ID E ND PA Y M E NT PLA N ( X )
The announcements of dividend distribution is one of the company's internal actions an is
an important factor that can effect investor investments.
Variables and
Measurments

HOW TO M E A S U R E
Researchers used secondary data taken from the IDX Corner University of
Muhammadiyah Malang.
 S TO C K M A RKE T RE S PO NS E ( Y )
Every piece of information has the power to continuously raise investors' expectations. These
expectations encourage buying and selling interest as well as changes in market prices,
including dividend announcement policies.
Variables and
Measurments

HOW TO M E A S U R E
Calculate the actual daily stock return for each stock during the event.
 Resul
t

C H A N G E S IN S T O C K RETURNS ON C H A N G E S IN STOCK RETURNS ON

DEC LINI N G DI VIDEND I N C R E A S E D DIVIDEND
ANNOUNCEMENT ANNOUNCEMENT
 Resul
t

ABNORMAL RETURN OF S H ARE S 7 D A Y S BEFORE

UP TO 7 D A Y S AFTER ANNOUNCEMENT OF
DIVIDENDS RAISED AND DIVI DENDS D E C R E A S E D
 THIS STUDY PROPOSES T WO
HYPOTHESES.
HYPOTHESIS 1 TEST IS A TEST OF INVESTORS' REACTIONS T O THE DECREASE IN
ANNOUNCEMENTS DIVIDEND.
The results of the inventory return anomaly testing using the one sample t-test
: The t-count value is -0.653 and the significant difference is 0.524.
A significance value above 0.05 indicates that there is no significant difference
in mean level (AAR).

HYPOTHESIS 2 TEST IS A TEST OF INVESTORS' REACTIONS T O THE

ANNOUNCEMENT OF A N INCREASE IN DIVIDENDS.

The results of the inventory return anomaly test using the one sample t-test:
The average stock return (ARR) before the announcement was -
0.046800,
The average stock return for 7 days after the dividend announcement is 0.007333,
The t value was 2,996 and the significance was 0.001.
Significantly smaller value than 0.05 showed a significant difference in the mean
abnormal return (AAR).
Conclusion
The stock price for the period of 7 days
before the dividend announcement up to 7
days dividend announcement shows a positif
sign.
A significant value less than 0.05 indicates
a significant difference.