Dividend policy

Dividend policy depends on the AGM. Dividend that the company can be fixed (no change) and can change, (there is a decrease and increase) of the dividend distributed before. One of the information deemed important enough for investors, namely information about the increased drop in the cash dividend distributed kerena company information containing cargo information related to the benefits that will be the investors or prospective investors in their assessment of the company (Sartono 1996: 6).

Some research on the dividend as Dian and Banu (2004), and Hanung Hidayah (2002), Prasetiono (2000), Apriani (2005) find that dividend announcements have any impact on the market reaction indicated that the differences with the stock price, return, and trading volume . In research on the actual information that does not show consistent results. Suparmono (2002) test the dividend announcements that occurred during the period 1991-1998. Finding indicates that the market reaction is significant in the t-5 and t-0 for dividend increases and t-0 for dividend Reaction market decline that occurred can be a purchase or sale of shares, the company announced a stock dividend. Swary and Aharony (1980) in the research shows the market reaction to the show quickly to changes in the dividend to dividend increases and decreases.

The announcement will be followed by changes in increased stock prices also increased and that the dividend change announcement will be followed by declining stock prices decline. This study draws on research conducted by Prasetiono that test the influence of the dividend announcement abnormal retun shares on the Jakarta Stock Exchange (BEJ). Research Prasetiono (2000) find the dividend announcement does not cause the average abnormal stock return is significant, especially for the dividend increase group, and no significant differences between the average abnormal return before and after the dividend announcement.


lead to changes in the distribution of stock return. Excellence is all srv indicator value to be positive so that heterogeneous information can be removed and the impact of heterogeneous information that can be detected with the indicator srv, while the abnormal return when the average, the value of positive and negative of each other.
Based on the description above, the authors are interested to conduct research with the title: "The announcement from Reviewed Cash Dividend Increase and decrease of variability Level Dividend Advantage Stock Exchange Shares in Indonesia."

This study will test the influence back to the cash dividend announcement market reaction rate variability using a variable profit share with the Security Return Variability Indicators (srv). This study draws on research conducted by Prasetiono (2000) examined the effect of the dividend announcement abnormal return Bei period in 1997. Differences of this research with previous research is the observation period of years of research, observation period of this research is from 1 January 2004 to 31 December 2007 and to see a market reaction. Research using this variability to the level of dividend indicator srv. The reason for the use of a variable dividend rate variability is to see whether the aggregate market dividend rate pengumumuan informative in the sense of whether the dividend announcement