Abstract

Indonesian society who participates in the capital market is still low. The purpose of study specifically to determine signaling hypothesis validity and trading range, which expected with a positive reaction from a market to stock split action can increasing investor base who participating in the capital market, thus increasing community who turned on Indonesia Stock Exchange (BEI) which in turn will increase the role of capital market in Indonesia in order to expand financial access for community this is in line with financial inclusion program. This study uses data 25 companies stock which stock split with event window during 11 days that are 5 days before and 5 days after stock split that occurred during 2007-2012 in IDX. The method used in this study were using paired sample T-test. Changes on the trading volume activity show more liquid stocks, as well as an increase in bid-ask spreads (proxy from retail investors increased) after stock split event proved that stock split policy can expand retail investor base

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