Open AccessMarket Reaction to the Announcement of Covid-19: Event Study in Indonesia
Author(s) -
Ramadhana Tri Hardiyanti,
Ratna Septiyanti,
Fitra Dharma
Publication year - 2021
Publication title -
journal dimensie management and public sector
Language(s) - English
Resource type - Journals
ISSN - 2709-6211
DOI - 10.48173/jdmps.v2i2.89
Subject(s) - covid-19 , event study , wilcoxon signed rank test , coronavirus , indonesian , declaration , abnormal return , sample (material) , stock exchange , event (particle physics) , business , medicine , economics , disease , political science , history , infectious disease (medical specialty) , finance , mann–whitney u test , virology , law , outbreak , chromatography , quantum mechanics , physics , philosophy , context (archaeology) , linguistics , chemistry , archaeology
The aim of this study is to examine if there are substantial variations in irregular return and trading volume behavior prior to and after President Joko Widodo's March 2, 2020 national declaration of the first Coronavirus Disease-19 case in Indonesia. This analysis was conducted using secondary evidence. The community of the analysis was comprised of all companies listed on the Indonesian Stock Exchange in 2020, with a purposive sample size of 327 firms. The time span covered in this review was 11 days: 5 days prior to the first Coronavirus Disease-19 case being confirmed (t-5), the day of the announcement (t0), and 5 days after the first Coronavirus Disease-19 case being reported (t+5). The estimate duration covered in this research was 10 days, from t-15 to t-5 prior to the occurrence day. The data where analyzed using the Wilcoxon Signed Rank Test. According to the results, there were inconsistencies in irregular returns and trading volume activity following the national announcement of the first Coronavirus Disease-19 case in Indonesia.