ABSTRACT
The COVID-19 pandemic has forced everyone to stay at home and affected people's interest in starting investments as shown by the increasing number of stock investors in Indonesia up to 56.21% in 2020 and 92.99% in 2021. However, the significant increase in the number of new investors during the pandemic was not accompanied by a good level of financial literacy of the Indonesian people, which was still considered low at 38.03%. This study used the event study method with an event window from 5 days before the announcement to 5 days after the announcement of the corporate action (-5, 0, +5). The corporate actions studied consisted of dividend announcements, rights issues, and stock splits. The three corporate action announcements experienced different market reaction behavior before and during the COVID-19 pandemic period. There were indications of information leakage that occurred in dividend announcements both before and during the pandemic but with a significantly greater CAAR intensity during the pandemic. In terms of market enthusiasm for the economic potential, after the announcement, the market's reaction to corporate rights issues and stock splits tended to be significant with more positive returns. This research can be a consideration for individual investors in understanding the mechanism of stock price movements before making investment decisions when there is a corporate action during a crisis period such as a pandemic.
