Stock Market Reaction Towards Corona Virus in Indonesia Stock Exchange

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 9

Year of Publication : 2020

Authors : Sasha Patrisia, Ni Luh Putu Wiagustini

10.14445/23939125/IJEMS-V7I9P114

How to Cite?

Sasha Patrisia, Ni Luh Putu Wiagustini, "Stock Market Reaction Towards Corona Virus in Indonesia Stock Exchange," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 9, pp. 109-116, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I9P114

Abstract:

This research’s purpose is to discover how every Indonesia Stock Exchange’s market sector (primary, secondary, and tertiary) reacted to the announcement of Corona Virus as a global emergency, the announcement of Indonesia Citizens infected with Corona Virus, and the announcement of Corona Virus as a national disaster. The population of this research are all market sectors registered at Indonesia Stock Exchange, and this population will also be used as a sample in this research. Paired sample t-test will be used as a data analysis technique.
Based on the result, it is found that there is a positive and significant difference of primary sector’s abnormal return around the announcement of Corona Virus as a global emergency on daily data period; meanwhile, on other sectors and events, there is no significant difference of abnormal returns.

Keywords:

Abnormal Return, Event Study, Corona Virus.

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