Perubahan Nama Perusahaan Terhadap Tingkat Likuiditas dan Abnormal Return Saham

Abstract

The announcement of a company name change is important information, especially in investment decisions. The announcement of a change in company name can cause a market reaction that affects the stock price. This study aims to analyze the change in the company's name on liquidity and stock abnormal returns on the Indonesia Stock Exchange from 2011-2021. The number of samples used in the study was 85 companies. The results showed an increase in positive abnormal returns after the announcement and a decrease in the bid-ask spread before and after the announcement. Furthermore, there is a significant negative abnormal return around the announcement date. In contrast to the bid-ask spread which shows a significantly positive result on the day around the announcement. In this study, the additional analysis of the effect of the ratio of ROA, DAR, firm size, and PBV showed a significant effect on abnormal returns, while firm age showed no significant effect on abnormal returns of the company's stock that changed its name.