scholarly journals IMPACT OF PRESIDENTIAL ELECTION ON INDONESIAN CAPITAL MARKET: AN EVENT STUDY ANALYSIS

2019 ◽  
Vol 7 (91) ◽  
pp. 177-185
Author(s):  
R. Ruffino ◽  
N.A. Achsani
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Presidential Election ◽  
Study Analysis

scholarly journals Reaksi pasar modal Indonesia terhadap peristiwa virus Corona

2021 ◽  
Vol 5 (1) ◽  
pp. 43-58
Author(s):  
Khaulis nia hidayah Khaulis
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Stock Price ◽  
Sampling Technique ◽  
Study Analysis ◽  
Analysis Method ◽  
Samples And Sampling ◽  
Research Period ◽  
Observation Period

This research uses the event study analysis method (evet study), the research period used for 44 days with the observation period used in this study is t-3 (the day before the announcement) and t + 3 (the day after the announcement) coronavirus events enter Indonesia. The sample in this study focused on the CSPI during the observation period in the form of daily stock price closing data. The events examined were non-economic events, namely the Coronavirus or covid 19 that affected the capital market. The population in this study are all companies listed on the IDX on the LQ45 index. The sampling technique in this study uses accidental sampling. In accidental sampling that is the determination of samples based on coincidence or anyone who happens to meet with researchers can be used with samples and sampling is not determined in advance, so researchers simply collect data from sampling units that are met or already exist.    

scholarly journals Horizontal and vertical takeover and sell-off announcements: Abnormal returns differ by industry

2006 ◽  
Vol 3 (2) ◽  
pp. 23-30 ◽  
Author(s):  
Stephan K.H. Gross ◽  
Hagen Lindstädt
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Specific Pattern ◽  
Market Model ◽  
Wealth Effects ◽  
Study Analysis ◽  
Cumulative Abnormal Returns ◽  
Data Points

We begin with the hypothesis that shareholder-wealth effects of corporate transactions differ depending on (a) the specific industry, (b) whether they are horizontal or vertical, and (c) whether they are integrations (takeovers) or disintegrations (partial sell-offs). A standard event study analysis for cumulative abnormal returns based on the market model is conducted for 309 data-points from 227 transaction announcements. We find that abnormal returns indeed do significantly depend on the transaction profile (horizontal vs. vertical and integration vs. disintegration) and industry. One main result is the observation that the capital market shows distinctive preferences for either an integration or disintegration strategy for vertical as well as for horizontal transactions. The specific pattern of this preference differs according to industry

scholarly journals Pengaruh Pelaksanaan Pemilu Presiden Indonesia Tahun 2019 Terhadap Return Saham JII70 di Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 146-168
Author(s):  
Erika Adevia Fendiyani ◽  
Dewi Zulia Kunthi ◽  
Kharis Fadlullah Hana
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Capital Market ◽  
Presidential Election ◽  
Stock Prices ◽  
Economic Environment ◽  
Presidential Candidate ◽  
Political Events ◽  
Economic Instrument ◽  
The Capital Market

Abstract The capital market an economic instrument is inseparable from the influence of the environment, both the economic environment and the non-economic environment. Political events are of the non-economic risks that can influence investors’ decisions to invest in the capital market. The purpose of this article is to determine the effect of the 2019 Indonesian presidential election on stock returns when a prospective presidential candidate will be determined before the presidential election, during the implementation, and also after the implementation of listed on JII70. The population in this study are companies whose shares are listed in the JII70 index. This research uses event study. The results showed that there was an investors’ where 7 days before and 7 days after 17 April 2019 elections were held simultaneously. This research shows that the presidential election events in 2019 significant on returns and stock prices in several companies incorporated in the JII70 index. Keyword: Capital Market, Return, Presidential Election. Abstrak Pasar modal sebagai salah satu instrumen ekonomi tidak terlepas dari pengaruh lingkungan, baik lingkungan ekonomi maupun lingkungan non-ekonomi. Peristiwa politik merupakan salah satu risiko non-ekonomi yang dapat mempengaruhi keputusan investor untuk berinvestasi di pasar modal. Tujuan artikel ini untuk mengetahui pengaruh pemilu presiden Indonesia tahun 2019 terhadap return saham ketika akan ditentukannya bakal calon presiden sebelum pelaksanaan pemilihan umum presiden, pada saat pelaksanaan, dan juga sesudah pelaksanaannya terhadap saham-saham yang terdaftar didalam indeks JII70. Populasi dalam penelitian ini adalah perusahaan yang sahamnya tercatat didalam indeks JII70. Penelitian ini menggunakan even study (studi peristiwa). Hasil penelitian menunjukkan bahwa ada reaksi investor di mana 7 hari sebelum dan 7 hari sesudah tanggal 17 April 2019 pemilu serentak. Penelitian ini menunjukkan bahwa peristiwa pemilu presiden pada tahun 2019 menunjukkan hasil yang cukup signifikan terhadap return dan harga saham dibeberapa perusahaan yang tergabung di indeks JII70. Kata Kunci: Pasar Modal, Return, Pemilu Presiden.

META-ANALYSIS ON AMERICAN PRESIDENTIAL ELECTION - 2016 AND AMERICAN STOCK MARKET

2020 ◽  
Vol 38 (1) ◽  
Author(s):  
Farhan Ahmed ◽  
Salman Bahoo ◽  
Sohail Aslam ◽  
Muhammad Asif Qureshi
Keyword(s):  
Content Analysis ◽  
Stock Market ◽  
Event Study ◽  
Presidential Election ◽  
Republican Party ◽  
Stock Exchange ◽  
Meta Analysis ◽  
Composite Index ◽  
Stock Index ◽  
Political Event

This paper aims to analyze the efficient stock market hypothesis as responsive to American Presidential Election, 2016. The meta-analysis has been done combining content analysis and event study methodology. The all major newspapers, news channels, public polls, literature and five important indices as Dow Jones Industrial Average (DJIA), NASDAQ Stock Market Composit Indexe (NASDAQ-COMP), Standard & Poor's 500 Index (SPX-500), New York Stock Exchange Composite Index (NYSE-COMP) and Other U.S Indexes-Russell 2000 (RUT-2000) are critically examined and empirically analyzed. The findings from content analysis reflect that stunned winning of Mr Trump from Republican Party worked as shock for American stock market. From event study, findings confirmed that all the major indices reflected a decline on winning of Trump and losing of Ms. Clinton from Democratic. The results are supported empirically and practically through the political event like BREXIT that resulted in shock to Global stock index and loss of $2 Trillion.

Financial institutions mergers: a strategy choice of wealth maximisation and economic value

2020 ◽  
Vol 12 (4) ◽  
pp. 495-529
Author(s):  
Mohamad Hassan ◽  
Evangelos Giouvris
Keyword(s):  
Credit Risk ◽  
Event Study ◽  
Financial Institutions ◽  
Value Creation ◽  
Economic Value ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Event Window ◽  
Content Type ◽  
Merger Announcement

Purpose This study Investigates Shareholders' value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. This study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures and not just profitability measures, as the empirical literature review suggests. Finally, the authors examine FIs mergers orientations of diversification and focus create more value for shareholders (in the immediate announcement window and several months afterward) and/or generates better cash flows, profitability and less credit risk. Design/methodology/approach This study examines FIs merger effect on bidders’ shareholder’s value and on their observed performance. This examination deploys three techniques simultaneously: a) an event study analysis, to estimate and calculate abnormal returns (ARs) and cumulative abnormal returns (CARs) in the narrow windows of the merger announcement, b) buy and hold event study analysis, to estimate ARs in the wider window of the event, +50 to +230 days after the merger announcement and c) an observed performance analysis, of financial and capital efficiency measures before and after the merger announcement; return on equity, liquidity, cost to income ratio, capital to total assets ratio, net loans to total loans, credit risk, loans to deposits ratio, other expenses and total assets, economic value addition, weighted average cost of capital and return on invested capital. Deal criteria of value, mega-deals, strategic orientation (as in Ansoff (1980) growth strategies), acquiring bank size and payment method are set as individually as control variables. Findings Results show that FIs mergers destroy share value for the bidding firms pursuing a market penetration strategy. Market development and product development strategies enable shareholders’ value creation in short and long horizons. Diversification strategies do not influence bidding shareholders’ value. Local bank to bank mergers create shareholders’ value and enhance liquidity and economic value in the short run. Bank to bank cross border mergers create value for bidders’ in the long term but are associated with high costs and higher risks. Originality/value A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.

Impact of ETF Listing on the Returns Generated by Underlying Stocks: Indian Evidence

2021 ◽  
pp. 0258042X2199101
Author(s):  
Prabhdeep Kaur ◽  
Jaspal Singh
Keyword(s):  
Event Study ◽  
Abnormal Returns ◽  
Price Impact ◽  
Exchange Traded Funds ◽  
Study Analysis ◽  
Jel Codes ◽  
Securities Transaction Tax ◽  
Underlying Stocks ◽  
Transaction Tax ◽  
The Impact

The advent of exchange traded funds (ETFs) has rendered index trading much affordable compared to their futures counterparts. The present study attempts to examine the impact of ETF listing on the price of the constituent securities of the index that it aims to track. The sample comprises of all the equity ETFs listed in India from 1 January 2002 to 31 March 2019. Event study analysis has been used to examine whether listing of ETFs bore any price impact on the constituent stocks of ETFs. To account for robustness, both parametric and non-parametric tests have been employed. The estimates obtained from event study analysis revealed that the constituent stocks generated insignificant returns for the period extending from January 2002 to March 2009 and April 2009 to March 2013 but positive and significant cumulative average abnormal returns (CAARs) post ETF listing for the period ranging from April 2013 to March 2019, thus providing evidence in support of positive price impact. The permission granted to pension funds, insurers and Employees’ Provident Fund Organisation (EPFO) to invest their funds in ETFs as well as reduction in Securities Transaction Tax (STT) account for the observed price differential. An analysis of the factors accounting for the variation in valuation effects ascertained that the stocks that were traded thinly prior to ETF listing and those forming part of ETFs with larger asset base experienced positive price impact following ETF listing. JEL Codes: G11, G14

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