Perbedaan Return Saham Sebelum dan Sesudah Pengumuman Stock Repurchase pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

Event study is a study that studying the market reaction to specific event that the information published as an announcement. Announcing stock repurchase prior the execution will give effect to the investors, the company and the management. According to the signaling hypothesis, stock repurchase announcement is a positive signal that the company has a good level of profitability. This makes investors assess a company which has good prospects in the future so that the result of this announcement, the stock price will increase shareholder wealth ((Battacharya, S. 1979). This research goal is to see whether the average abnormal return (AAR) after the company's stock repurchase announcements is higher than before the announcements. The aim is to test the information content of stock repurchase announcements. The research was carried out by event study method using a statistical test t-test. Samples testing are profit companies listed on the Indonesia Stock Exchange in the period 2004-2011. The results show average abnormal stock returns after the announcement of stock repurchase is as a whole based on the results of descriptive statistics using paired sample t-test, not significantly higher than before the announcement of stock repurchase from companies listed in Indonesia Stock Exchange in 2004- 2011. Thus, it can be concluded that there was no significant difference in stock returns before and after the announcement of stock repurchase from companies listed in Indonesia Stock Exchange in 2004-2011 based on the results of different test using paired sample t-test