CAPITAL MARKET’S REACTION TOWARDS 2014 WORKING CABINET ANNOUNCEMENT (INDONESIAN CASE STUDY)
Abstract: The purpose of this
study is to examine the market reaction regarding the announcement of working cabinet following the election of
Jokowi as the President of Indonesia. Political events such as presidential
election, government change, cabinet announcement, and other events are very
influential towards price and trade volume at the stock exchange since the
political events are closely related to the state economy stability. The Sample in this study is stock which was
listed as issuers in Indonesia Stock Exchange (IDX) which included in LQ45
company group during this research period from 20 October– 3 November 2014. The
result shows that there was significant effect towards abnormal return
difference before and after the cabinet announcement on the companies listed in
LQ 45. The existence of this significant difference means that market reacted
with the cabinet announcement event.
Author: Arif Saputra, Anindya
Ardiansari
Journal Code: jpmanajemengg150037
