Objective - The investment decision made by investors was a reaction to the information received by investors. The information captured by the market as a signal. One example of information used by investors is right issue event. The aims of this study are to examine and to analyze the effect of growth opportunities, issue size, leverage, ownership concentration, and subscription price discount toward cumulative abnormal return on right issue event.

Methodology/Technique - This type of research is explanatory research. The sample of this research is real sectors companies which have issuing rights during the2012-2014 period in Indonesia Stock Exchange, by using census method, and obtained in 37 companies. Data were analyzed by multiple linear regression method.

Findings - According to statistical results, issue size, leverage, and subscription price discount havepositive significant effect on cumulative abnormal return, while growth opportunities and ownership concentration have insignificant effect. This positive effect suggests that such right issue captured by investors as a positive signal and conveys favorable information about new investment opportunities.

Novelty - This research investigated the factors that influence the investment decisions made at the time of the rights issue in Indonesia Stock Exchange.

Type of Paper - Empirical

Keywords: Right Issue, Cumulative Abnormal Return, Signaling Effect.