Abstract :
ABSTRACT
The aim of this research was to investigate the information content and
intra industry effect of dividend announcement in BEI. The population of this
research are agriculture firms and property, real estate and building construction
firms. Using purposive sampling method, obtained 31 firms that report dividend
(43 observation) dan 40 firms that non report dividend (729 observation) during
- Analysis of data is using one sample t-test for examine information
content and intra industry effect of dividend announcement. The result of this
research show that there was information content in dividend announcement with
a significant positive abnormal return in t-4, t-2, t+3, t+4 and negative in t-0,
t+2, t+5 and also there was an intra industry transfer information effect that is
more dominant to the contagion effect with abnormal return in t-4, t-1 and t + 2
which is positive in the same direction with abnormal return reporter firms.
Key words: dividend announcement, transfer of infromation, contagion effect, abnormal return