REAKSI PASAR MODAL ATAS PEMILIHAN PASANGAN PRESIDEN DAN KABINET KERJA DI INDONESIA

Abstract

The background of this Event study is meant to find out the reaction of capital market on the election event of presidential couple and cabinet in Indonesia. This research uses abnormal return indicator to all of the stock which are included in the LQ-45 Index in Indonesia Stock Exchange. The research period consist of 42 estimation periods and 7 days of event period. The research samples are 35 ILQ-45 companies whose stocks are actively traded in Indonesia Stock Exchange (BEI) and these stocks have been selected by using purposive sampling. Moreover, the data Composite Stock Price Index is taken from the Indonesia Stock Exchange (IDX). The statistics methods which have been used to determine abnormal return are: t test, one sample t-test. The result of abnormal return test shows that the reaction of capital market on the election event of presidential couple and the cabinet has positive value but not significant.

Keywords: Event Study, Abnormal Return, ILQ-45