Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic
This study aims to examine the c pandemic in Indonesia. There were two events observed, the first event was the announcement of the first positive case of Covid-19 in Indonesia, and the second event was the determination of the status of a national disaster by the Indonesian government. Testing of e...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Brawijaya
2022-04-01
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| Series: | APMBA (Asia Pacific Management and Business Application) |
| Subjects: | |
| Online Access: | https://apmba.ub.ac.id/index.php/apmba/article/view/505 |
| _version_ | 1811296096273563648 |
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| author | I Wayan Widnyana G Oka Warmana |
| author_facet | I Wayan Widnyana G Oka Warmana |
| author_sort | I Wayan Widnyana |
| collection | DOAJ |
| description | This study aims to examine the c pandemic in Indonesia. There were two events observed, the first event was the announcement of the first positive case of Covid-19 in Indonesia, and the second event was the determination of the status of a national disaster by the Indonesian government. Testing of effect of the Covid-19 pandemic on stock prices was carried out by using an independent sample t-test against the average ICI before and after the two events. Testing the market reaction using the event study methodology. The test results found that the ICI average decreased significantly after the announcement of the first positive Covid-19 case. The ICI average also decreased significantly after the determination of the national disaster status. The average ICI return did not differ significantly before and after the two events. The market reaction test found no significant abnormal returns around the two events. The Covid-19 pandemic had an impact on the Indonesian capital market, marked by a decline in the ICI, although investors in the capital market did not react excessively, so there was no significant abnormal return. |
| first_indexed | 2024-04-13T05:43:16Z |
| format | Article |
| id | doaj.art-b626cead40ee40699e2c8b51c4e13b15 |
| institution | Directory Open Access Journal |
| issn | 2252-8997 |
| language | English |
| last_indexed | 2024-04-13T05:43:16Z |
| publishDate | 2022-04-01 |
| publisher | University of Brawijaya |
| record_format | Article |
| series | APMBA (Asia Pacific Management and Business Application) |
| spelling | doaj.art-b626cead40ee40699e2c8b51c4e13b152022-12-22T03:00:02ZengUniversity of BrawijayaAPMBA (Asia Pacific Management and Business Application)2252-89972022-04-0110341342410.21776/ub.apmba.2022.010.03.12277Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 PandemicI Wayan Widnyana0G Oka Warmana1Universitas Mahasaraswati DenpasarUniversitas Pembangunan Nasional “Veteran” Jawa Timur, IndonesiaThis study aims to examine the c pandemic in Indonesia. There were two events observed, the first event was the announcement of the first positive case of Covid-19 in Indonesia, and the second event was the determination of the status of a national disaster by the Indonesian government. Testing of effect of the Covid-19 pandemic on stock prices was carried out by using an independent sample t-test against the average ICI before and after the two events. Testing the market reaction using the event study methodology. The test results found that the ICI average decreased significantly after the announcement of the first positive Covid-19 case. The ICI average also decreased significantly after the determination of the national disaster status. The average ICI return did not differ significantly before and after the two events. The market reaction test found no significant abnormal returns around the two events. The Covid-19 pandemic had an impact on the Indonesian capital market, marked by a decline in the ICI, although investors in the capital market did not react excessively, so there was no significant abnormal return.https://apmba.ub.ac.id/index.php/apmba/article/view/505abnormal returnevent studyicimarket reactioncovid-19 |
| spellingShingle | I Wayan Widnyana G Oka Warmana Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic APMBA (Asia Pacific Management and Business Application) abnormal return event study ici market reaction covid-19 |
| title | Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic |
| title_full | Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic |
| title_fullStr | Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic |
| title_full_unstemmed | Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic |
| title_short | Indonesia Composite Index and Market Reaction in Indonesia Due to Covid-19 Pandemic |
| title_sort | indonesia composite index and market reaction in indonesia due to covid 19 pandemic |
| topic | abnormal return event study ici market reaction covid-19 |
| url | https://apmba.ub.ac.id/index.php/apmba/article/view/505 |
| work_keys_str_mv | AT iwayanwidnyana indonesiacompositeindexandmarketreactioninindonesiaduetocovid19pandemic AT gokawarmana indonesiacompositeindexandmarketreactioninindonesiaduetocovid19pandemic |