Jurnal Bisnis dan Akuntansi, Vol.12, No. 3, Desember, 2010 (Rak 6-L : Ekonomi, Bisnis dan Akuntansi)
Number of demand for shares will raise the price and share return. Some companies choose to do share split because the prices are too high that will affect investor interest. The share split is the corporate action to make its share price lower and more attractive to be traded. The methode used is descriptive and werification method. Data analysis used is event study of the announcement of a corporate until 2008 in Indonesia Share Exchange. The analysis was performed by using paired samples t test to test the average difference. The result shows the bid-ask spread before and after share split are different, meaning that share split affects the liquidity of shares, but objective to improve the share luquidity is not achieved. Abnormal returns before and after share split are different, meaning that share split affects the share return, but objective to improve the share return is not achieved.