Analysis the effect of cash dividend distributions in relation with fluctutional public stock price and public investor investment perspectives
The dividend distribution is one of the corporate actions by the company in making decision for the profit that generate in that time. This action is one of the benefit that investor get from invest the money in company, besides from the capital gain. When the company distributed dividend are explain the company in good performance, because the distributed dividend is getting from the net profit.rnIn this thesis, the author would like to find out about the effect of cash dividend distribution to the fluctuated of stock price and it will mirror to the public investor perspectives with the focus on the information of distribution dividend that provided by the company about distribution dividend. The sample of companies was select from companies that listed in Index LQ 45 in year 2006 - 2010 that have distribution dividend.rnThe result of this research was in negative reaction. The information of distributed dividend is not giving the significant effect to the stock price, because it was result relative the same of average stock price surrounding 30 days of ex dividend date.rnFrom the investor perspectives information of cash distributed dividend giving a positive reaction to the volume of trading a stock, the volume of trading a stock increasing steadily approaching the ex-dividend date. Partly of investor was giving support to the signaling theory which argues that declared of dividend is believed have information and give a signal about the profit and company performance in the future. It shows that increasing in stock price usually occurs in period before cum dividend date (t-2).
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