Islamic Capital Market Reaction To The President of The General Election Date 17th April 2019 In Indonesia
Abdullah Khoiri (a), Imram Mawardi (b)
(a) Student of the Master of Science in Islamic Economics, Faculty of Economic and Business Universitas Airlangga
(b) Department of the Master of Science in Islamic Economics, Faculty of Economic and Business Universitas Airlangga
Abstract
The purpose ofthis study was to analyze the reaction of investors in the Indonesia Stock Exchange (BEI) to the events of Presidential Election on April 17, 2019 to the Trading Volume Activity (TVA) and Abnormal Return (AR). The method used in this study is event study by doing different t-test for Trading Volume Activity (TVA) and Abnormal Return (AR) before and after the event. This study aims to examine and analyze the reaction of investors to the Presidential Election. This research was conducted companies in corporated in the JII at Indonesian Stock Exchange. The samples are 30 companies, with a purposive sampling method. . The analysis technique that used are Paired Sample t-Test and the Mann-Whitney Test. The results are there are no any differences in average abnormal return obtained by investors at the time before and after the Regulation of Finance Minister of Tax Amnesty .The hypotheses are rejected due to the short observation period and the results are the movement of capital markets in Indonesia is still stable on Presidential Election.The event does not contain meaningful information for investors, so investors in the capital market do not react.
Keywords: Event Study, Islamic Capital Masket, Trading Volume Activity, Abnormal Return
Topic: Social and Economic Issues