Market Reactions on Corporate Actions in Growing and Nongrowing Energy Consuming Companies


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Authors

  • Andini Nurwulandari Graduate School of Master Management Program, Nasional University, Jakarta, Indonesia
  • Hasanudin Hasanudin
  • Melati Melati

Abstract

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 five days before and after corporate actions in the form of split-up, reverse split, right issue, 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.Keywords: Market reaction, corporate action, split-up, reverse split, right issue, merger and acquisitionJEL Classifications: D81, P48, Q35, Q42DOI: https://doi.org/10.32479/ijeep.10737

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Published

2021-04-10

How to Cite

Nurwulandari, A., Hasanudin, H., & Melati, M. (2021). Market Reactions on Corporate Actions in Growing and Nongrowing Energy Consuming Companies. International Journal of Energy Economics and Policy, 11(3), 290–295. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/10737

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