Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange
The COVID-19 pandemic has precipitated unprecedented uncertainty within the stock market, eliciting adverse reactions within the capital market. This environment compelled companies to engage in corporate actions. This research aimed to develop a model assessing the impact of corporate actions duri...
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| Format: | Article |
| Language: | English |
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Master Program in Economics, Graduate Program of Universitas Jambi
2023-10-01
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| Series: | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| Subjects: | |
| Online Access: | https://online-journal.unja.ac.id/JES/article/view/17027 |
| _version_ | 1827356854532964352 |
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| author | Tona Aurora Lubis Fitriaty Fitriaty Novita Sari Firmansyah Firmansyah Maryati Ningsih |
| author_facet | Tona Aurora Lubis Fitriaty Fitriaty Novita Sari Firmansyah Firmansyah Maryati Ningsih |
| author_sort | Tona Aurora Lubis |
| collection | DOAJ |
| description |
The COVID-19 pandemic has precipitated unprecedented uncertainty within the stock market, eliciting adverse reactions within the capital market. This environment compelled companies to engage in corporate actions. This research aimed to develop a model assessing the impact of corporate actions during the COVID-19 pandemic on the Indonesia Stock Exchange. This study employed an event study methodology to analyze corporate actions from March 1 to March 30, 2021, identifying four key actions: Stock Splits, Pre-emptive Rights (Rights Issues), Partial Delisting, and Warrants. These corporate actions influenced various metrics, including the frequency of stock returns, actual returns, stock returns, and trading volume activity. The outcomes of these actions varied, presenting differences before and after their execution. The study's findings categorize the impact of corporate actions during the pandemic into two distinct groups: insignificant and significantly negative. This research contributes to understanding the ramifications of corporate decisions during periods of heightened market volatility, specifically within the context of the Indonesia Stock Exchange during the COVID-19 pandemic.
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| first_indexed | 2024-03-08T05:16:00Z |
| format | Article |
| id | doaj.art-531ed49dc8ba419c8b0ebd445eb6e3ae |
| institution | Directory Open Access Journal |
| issn | 2338-4603 2355-8520 |
| language | English |
| last_indexed | 2024-03-08T05:16:00Z |
| publishDate | 2023-10-01 |
| publisher | Master Program in Economics, Graduate Program of Universitas Jambi |
| record_format | Article |
| series | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| spelling | doaj.art-531ed49dc8ba419c8b0ebd445eb6e3ae2024-02-06T22:50:00ZengMaster Program in Economics, Graduate Program of Universitas JambiJurnal Perspektif Pembiayaan dan Pembangunan Daerah2338-46032355-85202023-10-0111410.22437/ppd.v11i4.17027Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock ExchangeTona Aurora Lubis0Fitriaty Fitriaty1Novita Sari2Firmansyah Firmansyah3Maryati Ningsih4Department of Management, Faculty of Economics and Business, Universitas Jambi, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Jambi, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Jambi, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Jambi, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Jambi, Indonesia The COVID-19 pandemic has precipitated unprecedented uncertainty within the stock market, eliciting adverse reactions within the capital market. This environment compelled companies to engage in corporate actions. This research aimed to develop a model assessing the impact of corporate actions during the COVID-19 pandemic on the Indonesia Stock Exchange. This study employed an event study methodology to analyze corporate actions from March 1 to March 30, 2021, identifying four key actions: Stock Splits, Pre-emptive Rights (Rights Issues), Partial Delisting, and Warrants. These corporate actions influenced various metrics, including the frequency of stock returns, actual returns, stock returns, and trading volume activity. The outcomes of these actions varied, presenting differences before and after their execution. The study's findings categorize the impact of corporate actions during the pandemic into two distinct groups: insignificant and significantly negative. This research contributes to understanding the ramifications of corporate decisions during periods of heightened market volatility, specifically within the context of the Indonesia Stock Exchange during the COVID-19 pandemic. https://online-journal.unja.ac.id/JES/article/view/17027Corporate actionCOVID-19Even studyIndonesia Stock Exchange |
| spellingShingle | Tona Aurora Lubis Fitriaty Fitriaty Novita Sari Firmansyah Firmansyah Maryati Ningsih Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Corporate action COVID-19 Even study Indonesia Stock Exchange |
| title | Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange |
| title_full | Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange |
| title_fullStr | Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange |
| title_full_unstemmed | Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange |
| title_short | Effects of corporate actions on market dynamics during the COVID-19 pandemic: An event study on the Indonesia Stock Exchange |
| title_sort | effects of corporate actions on market dynamics during the covid 19 pandemic an event study on the indonesia stock exchange |
| topic | Corporate action COVID-19 Even study Indonesia Stock Exchange |
| url | https://online-journal.unja.ac.id/JES/article/view/17027 |
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