Comparative Analysis of Company Market Reactions on Right Issue for Pay Debt and Investment

The right issue is the issuance of new shares conducted by companies where the right to buy new shares is given to the old shareholders. Funds from the rights issue can be used by companies for various purposes, namely paying off debt and investment. In this study wanted to test the market reaction to the announcement of the rights issue aimed at paying off debt and rights issues aimed at investment and comparing the market reaction to the rights issue aimed at paying off debt and investment. The research was conducted on companies listed on the Indonesia Stock Exchange (IDX) and which issued rights issues in 2015-2017 with a sample of 76 rights issues. The analysis techniques used were one sample t-test and independent sample t-test. Based on the results of the study, it was found that there was a positive market reaction to the rights issue aimed at investment. Whereas in the rights issue aimed at paying debt there is no market reaction. This research also proved that there was no difference in the market reaction to the rights issue aimed at paying off debt and investment.