scholarly journals Reaction of Sharia Capital Market toward Political Events in Indonesia

2021 ◽  
pp. 11-20
Author(s):  
Sisca Debyola Widuhung
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Trading Volume ◽  
Presidential Elections ◽  
Abnormal Returns ◽  
The Political ◽  
Stock Trading ◽  
Market Reactions ◽  
Political Events ◽  
Observation Period

This study aims to examine the reaction of the sharia capital market to political events in Indonesia. The political events referred to in this study are the events of the 2014 and 2019 presidential elections. The market reactions used are abnormal returns and stock trading volume. The sample in this study is stocks included in the Jakarta Islamic Index (JII) during the study period, which are 22 stocks. This study used an event study with an observation period of 21 trading days, namely 10 trading days before, one day of the day event, and 10 trading days after the 2014 & 2019 presidential and vice presidential elections. From the result, it can be seen that both tests are greater than 5%. Therefore, H0(1 and 2) are accepted.

scholarly journals ANALISIS DAMPAK PEMILU PRESIDEN JOKOWI TERHADAP RETURN SAHAM (Studi Kasus Saham LQ-45 di Bursa Efek Indonesia)

2016 ◽  
Vol 4 (2) ◽  
pp. 97
Author(s):  
Ayudia Hanung Diniar ◽  
Kiryanto Kiryanto
Keyword(s):  
Capital Market ◽  
Presidential Election ◽  
Trading Volume ◽  
Presidential Elections ◽  
The Political ◽  
Average Volume ◽  
Volume Activity ◽  
Stock Trading ◽  
Political Events ◽  
Before And After

Election is one of the political events that influence on a country’s economy. Capital market as one of insrumen economy can not be separated from environmental influences, both economic and environmental non-economicenvironment. This study aimed to analyze the reaction of the capital market to market anomaly events in Indonesia, in this case the 2014 Presidential Election. The reaction of the stock market measured by the abnormal return and trading volume activity stock. The population in this study are the companies whose shares are included in the LQ- 45. This study using event study. The results showed that the positive reaction of investors where the 4 days before and 2 days sebelumm July 9 2014 Presidential Election investors reacted positively. These conditions indicate the existence of investor optimism that the elections will be held on July 9, 2014. And an increase in the average volume of stock trading at before and after the presidential elections July 9, 2014.

scholarly journals Pengaruh Peristiwa Politik (Pemilu Presiden dan Pengumuman Susunan Kabinet) Terhadap Saham Sektor Industri Di Bursa Efek Indonesia

2018 ◽  
Vol 1 (2) ◽  
pp. 125
Author(s):  
Siti Wardani Bakri Katti
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Abnormal Return ◽  
Presidential Elections ◽  
Abnormal Returns ◽  
Industrial Sector ◽  
The Political ◽  
Stock Trading ◽  
Political Events ◽  
Before And After

<p>ABSTRACT</p><p><br />Political events is one of the non-economic risks that may affect the investor's decision to invest in the capital market. The purpose of this article to determine the reaction and the difference of abnormal return of stock industry sector in Indonesia Stock Exchange (IDX) between before and after the political events (the presidential elections and the announcement of the cabinet line). Selection of industrial sector companies as research objects based on the premise that the industrial sector is the main sector driving stock trading in the IDX. This article using event study method to measure the market's reaction to events of national politics. In conducting this article used the data Composite Stock Price Index (JCI) as well as daily stock trading data on the industrial sector. Based on the results of the sample selection using purposive sampling, the sample in the study of 40 companies. The results can be concluded that there are abnormal returns around the national political events, but there are no differences in Average Abnormal Return (AAR) before and after the political events. This shows the predictions and information received by the stock market participants are relatively the same.</p><p>Keywords: Political Events, Presidential Elections, Stock Market, Abnormal Return, Event Study</p>

scholarly journals REAKSI PASAR ATAS STOCK SPLIT PADA PASAR MODAL SYARIAH INDONESIA DAN MALAYSIA PERIODE 2015-2019

2020 ◽  
Vol 7 (4) ◽  
pp. 734
Author(s):  
Fadlilah Fadlilah ◽  
Bayu Arie Fianto
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Abnormal Return ◽  
Market Reaction ◽  
Statistical Tests ◽  
Abnormal Returns ◽  
T Test ◽  
Market Reactions ◽  
Stock Split ◽  
Observation Period

This study aims to determine the market reaction to the stock split in the market. This research uses a quantitative approach using the event study method to analyze market reactions to an event. The analysis technique uses the One Sample t-Test to see market reactions and the Independent Sample t-Test to determine whether there is a difference between the Indonesian and Malaysian Islamic capital markets with a 21-day observation period consisting of 10 days before the stock split announcement (t -10), day of stock stock announcement (t0 or t = 0), and 10 days after stock split announcement (t + 10). The results of this study, based on statistical tests with α = 5%, found a significant abnormal return around the stock split announcement on the Indonesian Islamic capital market. AAR significant as much as 4 days and CAAR significant as much as 18 days during the observation period. In the Malaysian Islamic capital market, abnormal returns were also found to be significant around the stock split announcement. AAR is significant for 3 days during the observation period, 1 day before the announcement of the stock split, during the announcement of the stock split, and 1 day after the announcement of the stock split. A significant CAAR of 19 days during the observation period. In the independent sample t-test, AAR Indonesia and Malaysia obtained sig. (2-tailed) of 0.658. In the CAAR test, Indonesia and Malaysia obtained sig. (2-tailed) of 0.563. So there is no difference between the Indonesian and Malaysian sharia capital market reactions.Keywords: Market Reaction, Stock Split, Abnormal Return, Event Study

scholarly journals Do Regional Election and Presidential Election Affect Stock Exchange? An Event Study in the Indonesian Stock Exchange

2021 ◽  
Vol 7 (1) ◽  
pp. 71-80
Author(s):  
Khanifah Khanifah ◽  
Agus Triyani ◽  
Suhita Whini Setyahuni
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Trading Volume ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
T Test ◽  
Democratic Politics ◽  
Paired Samples ◽  
Before And After ◽  
Regional Elections

The 2018 simultaneous regional election in Indonesia is something new in the events of democratic politics in Indonesia. The events of the 2018 simultaneous regional election is one of the important events in 2018 that can cause a reaction of capital market to these events. This study aims to examine how the capital market reacts to the simultaneous regional elections in 2018 and presidential elections in 2019, by looking at the differences in the preceding and following periods based on 2 variables, namely abnormal return and trading volume activity. The sample in this study were 30 companies listed in the Indonesian Stock Exchange during 30 periods from February through July 2018. Research Methode This study used an event study. One paired samples T test was used as a technique analysis. The means of each variable within eleven days period was compared. The period of observation is five days before the event, five days after the event, and one day on event day. Based on the results of the parametric statistical calculations, the paired sample t-test showed that there was no difference between the level of abnormal returns before and after the 2018 simultaneous regional elections. On the other hand, there was a difference between trading volume of activity before and after the 2018 simultaneous regional elections.

scholarly journals Market Reaction on the Announcement of Elected President

2020 ◽  
Vol 3 (1) ◽  
pp. 71-87
Author(s):  
Fidiana Fidiana
Keyword(s):  
Information Content ◽  
Capital Market ◽  
Abnormal Returns ◽  
Investment Decisions ◽  
Stock Trading ◽  
Political Events ◽  
Election Process ◽  
Before And After ◽  
Trading Activities ◽  
The Stability

Investors tend to respond to political events information because they are considered to be supporting or risking the stability of the capital market, so they must immediately make investment decisions quickly. Unlike the election process in other countries, this five-yearly election in Indonesia is not just a regularity of changing authorities but also carries an ideological gamble. The 2019 election as a necessary test for Indonesia related to the issue of communist phobia: between secular and conservative. Different from previous research on political events that focus on the electoral period, this study aims to prove the information content of the presidential announcement in 2019 by using a window period of eleven days, which is five days before and five days after the announcements. Tests were conducted on 45 companies registered as LQ-45 companies in 2019. Different samples of paired tests were done using a paired t sample tool by comparing abnormal returns and the level of stock trading activity. By using various tests, this study proves the existence of significant differences in abnormal returns and trading activities in the period before and after the 2019 presidential announcement. So, it was concluded that the 2019 presidential announcement had information content that had an impact on obtaining abnormal returns for investors. This study also proves that investors respond to information and political events as part of their investment decisions. So that daily transaction fluctuations are indicated by a trend of increasing and decreasing selling and buying actions on a spot time

scholarly journals Does Trading Volume Activity React To The Announcement of Large-Scale Social Restrictions During The Covid-19 Pandemic?

2021 ◽  
Vol 1 (3) ◽  
pp. 301-307
Author(s):  
Suratna Suratna ◽  
Hendro Widjanarko ◽  
Humam Santosa Utomo
Keyword(s):  
Event Study ◽  
Capital Market ◽  
Trading Volume ◽  
Large Scale ◽  
Research Study ◽  
Volume Activity ◽  
Stock Trading ◽  
Study Approach ◽  
Analysis Technique ◽  
Before And After

This research is an event study that aims to examine the information content as measured by trading volume activity as a form of capital market reaction to the announcement of the COVID-19 pandemic in Indonesia. The purpose of this research study is to determine and analyze the presence or absence of trading volume activity before and after the announcement of Large-Scale Social Restrictions in the context of handling COVID-19 in Indonesia. The analytical method used in the study is a quantitative method in research with an event study approach which is used to analyze the reaction of the capital market to the announcement of large-scale social restrictions (PSBB) in the context of handling the COVID-19 pandemic in Indonesia. The data analysis technique in this research is using event study. The results showed that there were significant differences in stock trading volume activity before and after the announcement of the PSBB policy during the Covid-19 pandemic in DKI Jakarta.

scholarly journals Reaksi Pasar Atas Pemilu Presiden 2014 (Studi Pada Emiten Yang Listing di Jakarta Islamic Index)

2015 ◽  
Vol 2 (3) ◽  
pp. 233
Author(s):  
Astuti Kurniawati ◽  
Leo Herlambang
Keyword(s):  
Trading Volume ◽  
Quantitative Research ◽  
Presidential Elections ◽  
Market Reaction ◽  
Abnormal Returns ◽  
Volume Activity ◽  
Event Study Method ◽  
Before And After ◽  
The Difference ◽  
Observation Period

The results of the presidential elections can provide a signal for investors to make decisions to invest. The purpose of this study was to determine the market reaction to the results of the presidential elections. Market reaction in this study is indicated by the presence of abnormal returns around the announcement date and the difference in trading volume activity before and after the announcement. This study is a quantitative research by using event study method with 25 issuers that listed on the Jakarta Islamic Index during the study period. The study was conducted during the 121 days consisting of 100-day estimation period and 21-day observation period. Statistical calculation in this study showed insignificant results both in the AAR and TVR. It means there is no impact from the announcement of the presidential election’s result because the investors may have been anticipating the result of the announcement.

scholarly journals Capital Market Reaction Against Political Events (Event Study of Demonstration 212 Peaceful Action )

2018 ◽  
Author(s):  
Sri Utami Ady
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Capital Market ◽  
Stock Price ◽  
Abnormal Return ◽  
Trading Volume ◽  
Share Price ◽  
Stock Trading ◽  
Significant Difference ◽  
Before And After

This study aimed to explain the reaction of the capital market (Event study) 212 demonstrations peaceful protest events against the share price of PT Nippon Indosari Corpindo Tbk on December 2016. The study was conducted at PT Nippon Indosari Corpindo Tbk. As one of the companies affected directly the event. The data used the daily closing stock price data, daily stock trading volume, and the number of outstanding shares obtained from the Indonesia Stock Exchange. By using a t test analysis, there were three hypotheses in this study, namely whether the investor obtain abnormal return to their events (H1), whether there was a difference of abnormal return before and after the event (H2), whether there were differences in the volume of stock trading before and after the event (H3). Results of tests made clear that investors did not earn abnormal return to their peaceful protest demonstration event 212, the results of tests performed also explained that there was no significant difference in abnormal stock returns and trading volume before and after the event. This was because the Indonesian people already familiar with the demonstrations that occurred in the country, so that market participants were more calm in dealing with the situation. The reaction of investors to the event in the Indonesian capital market was quite low indicates the level of efficiency of the Indonesian capital market was still weak

Market reactions to the inclusion of people with disabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudia Araceli Hernández González
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
People With Disabilities ◽  
Market Reactions ◽  
Content Type ◽  
Study Methodology ◽  
Research Advance ◽  
The Impact

PurposeThis study aims to provide evidence of market reactions to organizations' inclusion of people with disabilities. Cases from financial journals in 1989–2014 were used to analyze the impact of actions taken by organizations to include or discriminate people with disabilities in terms of the companies' stock prices.Design/methodology/approachThis research is conducted as an event study where the disclosure of information on an organization's actions toward people with disabilities is expected to impact the organization's stock price. The window of the event was set as (−1, +1) days. Stock prices were analyzed to detect abnormal returns during this period.FindingsResults support the hypotheses that investors value inclusion and reject discrimination. Furthermore, the impact of negative actions is immediate, whereas the impact of positive actions requires at least an additional day to influence the firm's stock price. Some differences among the categories were found; for instance, employment and customer events were significantly more important to a firm's stock price than philanthropic actions. It was observed that philanthropic events produce negative abnormal returns on average.Originality/valueThe event study methodology provides a different perspective to practices in organizations regarding people with disabilities. Moreover, the findings in this research advance the literature by highlighting that organizations should consider policies and practices that include people with disabilities.

scholarly journals MARKET REACTION ON THE ANNOUNCEMENT OF SRI KEHATI INDEX IN INDONESIAN STOCK EXCHANGE

2019 ◽  
Author(s):  
Anggita Langgeng Wijaya ◽  
Mia Noviyanti ◽  
Probo Mahayu
Keyword(s):  
Trading Volume ◽  
Market Reaction ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Rank Test ◽  
Stock Trading ◽  
Population Sampling ◽  
Signed Rank ◽  
Before And After ◽  
Signed Rank Test

The purpose of this study was to test the market reaction to the announcement of the Sri Kehati Index on the Indonesia Stock Exchange. The population in this study is all companies included in the Sri Kehati Index from 2013 to 2016. The selection of samples was taken by the population sampling method. Hypothesis testing is done by paired t test and Wilcoxon Signed Rank Test. The findings of this research are: 1) there is no difference in abnormal returns before and after the announcement of the Sri Kehati Index on the Indonesia Stock Exchange. 2) There is a difference in the activity of stock trading volume before and after the announcement of the Sri Kehati index in the 5th and 6th periods, but there is no difference in the activity of stock trading volume in other periods. The Indonesia Stock Exchange did not react consistently to the announcement of the Sri Kehati Index.

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