Open AccessImpacts of South Korea’s Political Events in 2017 Towards KRX 100
Author(s) -
Yusnita Octafilia,
Angelina Rudyanto,
Aqil Azfi Hendri,
Sarli Rahman
Publication year - 2021
Publication title -
international journal of economics development research
Language(s) - English
Resource type - Journals
eISSN - 2715-7903
pISSN - 2715-789X
DOI - 10.37385/ijedr.v2i1.251
Subject(s) - politics , abnormal return , capital market , sample (material) , affect (linguistics) , capital (architecture) , nonprobability sampling , event study , test (biology) , monetary economics , business , economics , finance , political science , geography , law , population , linguistics , chemistry , philosophy , demography , context (archaeology) , archaeology , chromatography , sociology , stock exchange , paleontology , biology
The capital market is a means for investors to invest in the long term and diversify, spread ownership of the company, and even create a healthy business climate through information disclosure. Political phenomena and events that occur in a country greatly affect the sensitivity of the capital market and can affect investors' decisions in investing in the capital market, because the political situation of a country affects the country's economic conditions. This study was determined of abnormal return and trading volume activity of South Korea’s political events. It has a ten windows period, amounts of samples were 98 companies of KRX 100 by purposive sampling technique. Analysis techniques used one-sample t-test and paired difference test. The result showed there is an abnormal return, a significant negative abnormal return difference, and no significant trading volume activity before and after South Korea’s political events. It means South Korea’s market is said to be efficient in a strong form because it is not influenced by political information and news that occurred in 2017.