Capital Market Reaction to the Announcement of 2019 Presidential Candidates and Vice Presidential Candidates

Hendro Widjanarko, Muhammad Taufiq, Triani Pujiastuti

2019

Abstract

This research is an event study that aims to find out how the capital market reacts to the announcement of presidential candidates and vice-candidates president in 2019. Market reaction is measured using the variable abnormal return and the variable trading volume activity. The research sample was selected using the purposive sampling method and obtained a sample of 41 mining companies on the Indonesia Stock Exchange. Hypothesis testing is done by using paired sample t-test analysis test. In view of the consequences of factual tests demonstrate that there is no huge contrast between the normal anomalous return when the declaration of presidential up-and- comers and bad habit presidential competitors in 2019. There is a significant difference between the average trading volume activity before and after the announcement of presidential candidates and vice-presidential candidates president in 2019. This is because of the declaration of the presidential and bad habit presidential up- and-comers in 2019, giving a negative sign in the capital market. Political occasions will uncertainly affect the economy.

Paper Citation

in Harvard Style

Widjanarko H., Taufiq M. and Pujiastuti T. (2019). Capital Market Reaction to the Announcement of 2019 Presidential Candidates and Vice Presidential Candidates.In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM, ISBN 978-989-758-471-8, pages 337-341. DOI: 10.5220/0009965903370341

in Bibtex Style

@conference{icbeem19,
author={Hendro Widjanarko and Muhammad Taufiq and Triani Pujiastuti},
title={Capital Market Reaction to the Announcement of 2019 Presidential Candidates and Vice Presidential Candidates},
booktitle={Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,},
year={2019},
pages={337-341},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009965903370341},
isbn={978-989-758-471-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,
TI - Capital Market Reaction to the Announcement of 2019 Presidential Candidates and Vice Presidential Candidates
SN - 978-989-758-471-8
AU - Widjanarko H.
AU - Taufiq M.
AU - Pujiastuti T.
PY - 2019
SP - 337
EP - 341
DO - 10.5220/0009965903370341