The Effect of Price to Book Value, Financial Performance, Company Size and Stock Trading Liquidity on Stock Split Decision (Empirical Study of Companies Listed on the Indonesia Stock Exchange in 2015-2019)

ABSTRACT : This study aims to provide empirical evidence of the effect of price to book value, financial performance, company size, and stock trading liquidity on the company’s decision to do a stock split. A stock split is a form of corporate action taken by the company by lowering the par value per share but increasing the number of shares outstanding. The research population includes all companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The number of samples obtained in as many as 94 companies with the purposive sampling method. The data analysis technique used is logistic regression analysis. The results show that financial performance affects the company’s decision to do a stock split, while price to book value, company size with total assets proxy, and stock trading liquidity with TVA proxy have no effect on the company’s decision to do a stock split
Keywords: stock split, price to book value, financial performance, company size, stock trading liquidity