Open AccessInvestors Reaction to Bad News of COVID 19 (Evidence for Food and Beverage stocks: Comparison between IDX and BIST)
Author(s) -
Idah Zuhro,
Della Andrieanny Putri
Publication year - 2021
Publication title -
jurnal ekonomi pembangunan
Language(s) - English
Resource type - Journals
eISSN - 2527-4023
pISSN - 1693-2595
DOI - 10.22219/jep.v19i01.16434
Subject(s) - stock exchange , turkish , covid-19 , stock (firearms) , stock trading , business , monetary economics , econometrics , financial economics , economics , finance , medicine , stock market , virology , geography , linguistics , philosophy , context (archaeology) , disease , archaeology , outbreak , infectious disease (medical specialty)
The study aims to examine the reaction of stock investors in the food and beverage sub-sector to the announcement of COVID-19 on the Indonesia Stock Exchange (IDX) and the Turkish Istanbul Exchange (BIST). The approach method is an Event Study by comparing the return and volume of trading activity before and after the announcement of COVID-19 on the Indonesian and Turkish Stock Exchanges. The research sample is 32 IDX stocks and 27 BIST stocks. Observation period 13 weeks before and after the announcement. The distribution of the data is the basis for the selection of hypothesis testing. The study results showed that IDX investors reacted positively to the announcement of the COVID-19 pandemic, where stock returns were higher than before. Likewise, VTA was higher after the information, although not significant. Meanwhile, on the Turkish Stock Exchange, investors' positive reactions were shown by stock returns and trading volume activity, which was significantly higher after the COVID-19 announcement than IDX, which tends to stagnate.