Analysis of Market Reactions Before And After the Announcement of the Covid 19 Virus Pandemic

Ni Luh Putu Mita MIATI; I Gde Agung Wira  PERTAMA

doi:10.38142/ijesss.v1i3.36

Authors

Ni Luh Putu Mita MIATI Faculty of Economics and Business, Warmadewa University, Indonesia
I Gde Agung Wira PERTAMA Faculty of Economics and Business, Warmadewa University, Indonesia

DOI:

https://doi.org/10.38142/ijesss.v1i3.36

Abstract

this study will test the market reaction seen from the JCI on the announcement of the Covid 19 Virus Pandemic on the Indonesia Stock Exchange. This study uses secondary data, namely composite stock price index from companies listed on the Indonesia Stock Exchange (IDX) in 2020. This study uses an event study to analyze the movements that occur in the JCI from day to day with an event period of 10 days. The population used in this study was composite stock price index data on the 5 days before the announcement and 5 days after the announcement. The data analysis technique used to test the hypothesis in this study was the statistical analysis of Paired Sample T-test. This test tool is part of the comparative hypothesis test or comparison test. From the results it can be concluded 1) There is a difference in composite stock price index data before and after the announcement of the COVID-19 pandemic on 12 March 2020, 2) The announcement of the COVID-19 pandemic has an effect on the differences in the JCI before the announcement and after the announcement of the COVID-19 Pandemic.

Downloads

Download data is not yet available.

References

Atmadja, A. T., & Saputra, K. A. K. (2018). The influence of role conflict, complexity of assignment, role obscurity and locus of control on internal auditor performance. Academy of Accounting and Financial Studies Journal, 22(5), 1-5.

Baker, S. R., Bloom, N., Davis, S. J., Kost, K., Sammon, M., & Viratyosin, T. (2020). The unprecedented stock market reaction to COVID-19. The Review of Asset Pricing Studies, 10(4), 742-758.

Fahmi, I. (2012). Pengantar Pasar Modal. Bandung: Alfabeta.

Fitriyana, E. (2017). Pengaruh return on asset, earning per share, return on equity, dan net profit margin terhadap harga saham (Studi kasus pada perusahaan manufaktur sub sektor aneka industri yang terdaftar di BEI Pada Tahun 2011 Sampai 2015). Undergraduate Thesis, Muhammadiyah University of Semarang.

Gherghina, ?. C., Armeanu, D. ?., & Jolde?, C. C. (2020). Stock market reactions to Covid-19 pandemic outbreak: quantitative evidence from ARDL bounds tests and Granger causality analysis. International journal of environmental research and public health, 17(18), 6729.

Haroon, O., & Rizvi, S. A. R. (2020). COVID-19: Media coverage and financial markets behavior—A sectoral inquiry. Journal of Behavioral and Experimental Finance, 100343.

Khanthavit, A. (2020). World and national stock market reactions to COVID-19. Working Paper, Thammasat University. DOI: 10.13140/RG. 2.2. 22792.57606.

Lopatta, K., Alexander, E. K., Gastone, L. M., & Tammen, T. (2020). To Report or not to Report about Coronavirus? The Role of Periodic Reporting in Explaining Capital Market Reactions during the Global COVID-19 Pandemic. The Role of Periodic Reporting in Explaining Capital Market Reactions during the Global COVID-19 Pandemic.(April 3, 2020).

Mazur, M., Dang, M., & Vega, M. (2020). COVID-19 and the march 2020 stock market crash. Evidence from S&P1500. Finance Research Letters, 101690.

Michail, N. A., & Melas, K. D. (2020). Shipping markets in turmoil: An analysis of the Covid-19 outbreak and its implications. Transportation Research Interdisciplinary Perspectives, 7, 100178.

Rahman, M. L., Amin, A., & Al Mamun, M. A. (2020). The COVID-19 outbreak and stock market reactions: Evidence from Australia. Finance Research Letters, 101832.

Santoso, S. (2014). Statistik Parametrik Edisi Revisi. Jakarta : Elex Media Komputindo

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, Vol. 87, No. 3. (Aug., 1973), pp. 355-374

Utomo, A.P. (2020). WHO Umumkan Virus Corona sebagai Pandemi Global. https://www.kompas.com/global/read/2020/03/12/001124570/who-umumkan-virus-corona-sebagai-pandemi-global?page=all. (diakses tanggal 16 april 2020)

Saputra, Komang Adi Kurniawan., Putu Gede Wisnu Permana Kawisana., & Gde Deny Larasdiputra. (2019). Paradigma Riset Akuntansi. Penerbit: Indomedia Pustaka

Saputra, K. A. K., Sara, I. M., Jayawarsa, A. K., & Pratama, I. G. S. (2019). Management of Village Original Income in The Perspective of Rural Economic Development. International Journal of Advances in Social and Economics, 1(2), 52-59.

Saputra, Komang Adi Kurniawan., Dewa Ayu Rumini., Ida Bagus Komang Suarka., & AA Ketut Jayawarsa. (2020). Quality Asset Management and Asset Identification to Increase Village Income. Productivity Management, 25(4), 42-52.

Sharma, S. S. (2020). A note on the Asian market volatility during the COVID-19 pandemic. Asian Economics Letters, 1(2), 17661.

Xiong, H., Wu, Z., Hou, F., & Zhang, J. (2020). Which firm-specific characteristics affect the market reaction of Chinese listed companies to the COVID-19 pandemic?. Emerging Markets Finance and Trade, 56(10), 2231-2242.

Zaremba, A., Aharon, D. Y., Demir, E., Kizys, R., & Zawadka, D. (2020). COVID-19, government policy responses, and stock market liquidity around the world: A note. Research in International Business and Finance, 101359.

Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of COVID-19. Finance Research Letters, 101528.