| One solution which can be done by the company to decrease a considered too high stock price or to increase a considered too low stock price is by doing a stock split. Stock split is considered to be one of the most important information which needed by the investors, as a basic consideration to choose the most efficient portfolio investment. Over the years, stock split has become the most popular phenomena and also the most less understand around the stock market. The company manager has different motivations by doing the stock split, such as : a considered too high stock price, company profit which will be acquired in the future, rate of return, trading volume (whether it will be a big or small amount of it), and the rate of stock’s liquidity. The objective of this research is to analyze whether trading volume, trading frequency, spread, earnings per share, stock return, and stock beta will have effect or not on the company’s decision to do a stock split? In order to test the hypothesis in this research, researcher will use the univariate analysis (Mann-Whitney Test) and multivariate (Binary Logistic Regression). This research used 256 companies who did stock split and those who did not from year 2006 until 2008 in order to test six hypothesises. On the univariate analysis, which used Mann-Whitney Test, there was only one hypothesis who rejected the alternative hypothesis (Ha). In conclusion, only trading volume who does not take any effect whatsoever towards the company’s decision to do a split stock. Meanwhile, on the multivariate analysis which used Binary Logistic Regression, it can be seen that there were two hypothesises (spread and earnings per share) who rejected the alternative hypothesis (Ha). In conclusion, spread and earnings per share do not take any effect whatsoever toward the company’s decision to do a stock split. |