How Has the Indonesian Stock Market Performed During Covid-19 Outbreaks?

Authors

  • Doddy Setiawan Faculty of Economics and Business, Universitas Sebelas Maret and Center for Fintech and Banking, Universitas Sebelas Maret
  • Taufiq Arifin Faculty of Economics and Business, Universitas Sebelas Maret and Center for Fintech and Banking, Universitas Sebelas Maret
  • Y Anni Aryani Faculty of Economics and Business, Universitas Sebelas Maret
  • Josephine Tan-Hwang Yau Faculty of Economics and Business, Universiti Malaysia Sarawak

DOI:

https://doi.org/10.33736/ijbs.4312.2021

Keywords:

covid-19, economic impact, market reaction, abnormal return

Abstract

This paper analyzes the stock market reaction towards the Covid-19 pandemic by using a sample of Indonesian listed firms. In general, we document a significant negative cumulative abnormal returns when the Indonesian President announces the first case of Covid-19 in Indonesia. This effect remains ten days (weaker) after the announcement. However, we only find a short-term effect on the finance industry. While the explanation is still unclear, the investors may observe that the economic impact on the finance industry may arise in the long-run.

References

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Published

2021-12-17

How to Cite

Doddy Setiawan, Taufiq Arifin, Y Anni Aryani, & Josephine Tan-Hwang Yau. (2021). How Has the Indonesian Stock Market Performed During Covid-19 Outbreaks?. International Journal of Business and Society, 22(3), 1420–1428. https://doi.org/10.33736/ijbs.4312.2021