The Effect of Financial Technology Regulations on Banking Company Stock Returns in Indonesia

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 9

Year of Publication : 2020

Authors : Elza Surya Athory, Ida Bagus Anom Purbawangsa

10.14445/23939125/IJEMS-V7I9P112

How to Cite?

Elza Surya Athory, Ida Bagus Anom Purbawangsa, "The Effect of Financial Technology Regulations on Banking Company Stock Returns in Indonesia," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 9, pp. 94-99, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I9P112

Abstract:

Financial technology (fintech) is one of the developments in technology that would revolutionize the whole financial industry. The implementation of government regulations is predicted to have an impact on the rapid growth of fintech in Indonesia. This research aims to determine the impact of fintech regulations on banking company returns in Indonesia. An event study was conducted to measure the impact of fintech regulations on the stock returns of banking companies. Paired sample t-test was performed using average abnormal return (AAR) values of 18 banking companies during four fintech regulation announcements. The results in this study showed that fintech regulations have a positive effect on banking company stock returns, as can be seen from the increase of AAR values after regulations are implemented.

Keywords:

Event study, financial innovation, financial technology, regulation, stock return.

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