Open AccessThe Capital Market Response to The Announcement of The 2019-2024 Indonesia Onward Cabinet System
Author(s) -
Clara Trimawarningsih Saravia Jegarut,
Caecilia Wahyu Estining Rahayu,
Ima Kristina Yulita
Publication year - 2021
Publication title -
jurnal keuangan dan bisnis/jurnal keuangan dan bisnis
Language(s) - English
Resource type - Journals
eISSN - 2580-1236
pISSN - 1693-8224
DOI - 10.32524/jkb.v19i2.292
Subject(s) - cabinet (room) , capital market , business , sample (material) , economics , financial system , monetary economics , finance , engineering , mechanical engineering , chemistry , chromatography
This research aims to examine capital market response to the 2019-2024 Indonesia Onward Cabinet System announced by President Jokowi. This event study research used market estimation model to estimate the expected return with an estimated period of 100 days and window period of seven days. There were 90 companies that are the member of Kompas Index 100 as the sample used in this research. T-test was used to analyze the data. The result shows that the announcement System of Indonesia Onward Cabinet 2019-2024 was responded positively and significantly by capital market. The result supports signaling theory in which the announcement of the 2019-2024 Indonesia Onward Cabinet System gave positive signal (influence) on capital market.