| Summary: | Indonesian government�s decison to give bailout to Bank Century cause more
problems later in life. The policy was assessed against the rules. As a result, House of
Representatives members agreed to establish a special committee. After conducting
an investigation, House of Representatives finally decided that the policy is illegal
and recommend to the law enforcement officers to process these cases
This thesis aims to look at the effect of House of Representatives
recommendation to stock price movements financial industry companies in Indonesia
Stock Exchange. Tests conducted using event study model, by taking a sample of 35
companies engaged in the financial sector in Indonesia Stock Exchange. Research
carried out by using the method of Single Index Market Model.
Tests conducted to answer the hypothesis that has been set by the author, namely:
that there is a significant abnormal return around the event period, there is a
difference of abnormal returns before and after the event, there is difference in the
trading volume activity before and after the event. The test results showed that there
was a significant abnormal return in a few days, there is no difference between the
abnormal returns before and after the event, and there is no difference in the trading
volume activity before and after the event
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