Performance Analysis of Companies Go Public in Indonesia Doing Stock Buyback Policy

Abstract

This study aims to know whether there is a significant difference in return, abnormal return, and cumulative abnormal return of stock before and after doing a stock buyback policy. Object of research on two companies that stock buyback were listed on the Indonesia Stock Exchange in 2007. This type of research is the study of cases and event study. The results showed there was no real difference between the stock return period before and after the stock buyback policy PT Berlian Laju Tanker, while for PT Suryainti Permata there is a difference. For abnormal return before and after the stock buyback policy PT Berlian Laju Tanker found there was no real difference, but at PT Suryainti Permata found differences. For cumulative abnormal return of stock in PT Berlian Laju Tanker and PT Suryainti Permata found the difference before and after the stock buyback policy.

Keywords: buyback, return, abnormal return, cumulative abnormal return, event study.