Price Fraction Changes Impact on Stock Trading Indicators: An Events Study on Indonesia Stock Exchange

Adi Teguh Suprapto; Mulyono Mulyono; Danang Prihandoko

doi:10.21512/tw.v20i1.5103

Authors

Adi Teguh Suprapto Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia
Mulyono Mulyono Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia
Danang Prihandoko Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia

DOI:

https://doi.org/10.21512/tw.v20i1.5103

Keywords:

stock price fraction, stock trading volume, trading value of stock, frequency of trading of shares, Indonesia Stock Exchange

Abstract

This research presented differences of stock price fraction system to stock trading indicator variables such as volume, value, and frequency of stock trading transactions on companies listed in Indonesia Stock Exchange. The purpose of this research was to measure and analyze the difference of stock price fraction system to stock trading indicator variables. Sample determination based on the sampling method was saturated, i.e., the technique of determining the sample by using all members of the population as a sample. The sample in this research used JCI data as it represents the 115 issuers listed on the Indonesia Stock Exchange during the research period. This research used Mann-Whitney U Test to find out whether there were differences between two groups of data that were not related (independent) with the classification; group 1 was the volume data, the value and frequency of stock trading before the new price fraction that was applied 02 May 2016. While the second group data volume, value and frequency of stock trading after applying the new price fraction 02 May 2016. This research finds that the stock trading indicators reflected by the trading volume of stocks, the value of the stock, and the frequency of stock trading has a significant difference before and after the implementation of the new stock price fraction.

Dimensions

Plum Analytics

Author Biography

Adi Teguh Suprapto, Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia

Binus Business School, Management Department

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