Market Reaction to Capital Expenditure: Evidence from Company in Bankruptcy Risk

Objective - This study aims to examine whether the condition of bankruptcy risk a company will influence market response capital expenditure. The main hypothesis this research is that positive reaction level expenditure issued be different in companies with high and low risk. Methodology/Technique was conducted on 56 large capitalization Indonesia Stock Exchange for 2018-2021. Findings results testing indicate responds positively expenditures company's conditions. In addition, it proven at bankruptcy, reacts made by companies. contrast, are not state does respond expected used participants when they analyze information company. Novelty contributes literature providing empirical evidence which explores as unique factor affects relationship between response. Type Paper Empirical. Keywords: Capital Expenditure, Bankruptcy Risk, Market Response, Investment JEL Classification: G30, G31