1. CHAPTER RESEARCH METHOD 3.1. Research Method This thesis used purposive sampling method; in this method the sample is found the application of a certain criteria or consideration. This research emphasizes the relationship between earnings announcement to trading volume. and Sample The population from which a sample was taken for this research refer to companies in the manufacturing industry only which are listed in the Jakarta Stock Exchange from the period of January 2001 to December 2003 (financial period 2000 until 2002). The samples used in this research were those companies that met the following criteria: a. Earnings announcements of manufacturing companies within the financial period of 2000 until 2002. b. Companies where its dates of earnings announcements are available in the database. Sources Data collection was executed by compiling the secondary data that was available in MM UGM from the data sources in the Faculty of Economics library of UII Data Pasar Modal) and the JSX comer of Faculty of Economics PDPM UGM Data collection and the sources of data are described as below: a. Companies that have its dates of earnings announcement available. The data is gathered from both MM UGM and JSX comer of UII. b. Manufacturing companies that were listed in the Jakarta Stock Exchange. The data is gathered from the Indonesian Capital Market Directory. c. Trading volume of companies that meet the qualification above and it is collected from Faculty of Economics PDPM UGM.