Abstract :
The main purpose of this study is to investigate about the effect of devidend announcement to price and trading volume of stock. The effect reflected from a significant difference between prices and trading volume of stock before and after devidend announcement. The object of this study is company that listed in Indonesia Stock Exchange and doing devidend announcement in 2007. The study periode is between 5 days before devidend announcement and 5 days after devidend announcement. The method using paired sample t-test to compare price and trading volume of stock means between 5 days before devidend announcement and 5 days after devidend announcement. The results of this study show that price and trading volume of stock has a significant difference before and after devidend announcement.
Keywords : devidend announcement, price, trading volume