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Journal : Dinasti International Journal of Economics, Finance

Capital Market Reaction to Free Nutritious Food Policy: A Case Study of Palm Oil Companies on Indonesia Stock Exchange Putri, Jihan Eka; Nofal, Muhammad; Husnah, Husnah; Risendy, Rian
Dinasti International Journal of Economics, Finance & Accounting Vol. 6 No. 5 (2025): Dinasti International Journal of Economics, Finance & Accounting (November - De
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v6i5.5142

Abstract

The Free Nutritious Meal Policy, targeted at school students, toddlers, and pregnant women, is implemented as an effort to reduce stunting and produce high-quality human resources. The reaction of investors in the capital market to this program remains unknown, even though the program directly increases the volume of food that will be consumed, such as palm cooking oil. Therefore, this research aims to test whether investors react to the MBG program by analyzing the abnormal returns of palm oil company stocks that are expected to receive direct positive impacts from the program. To this end, we examine this market reaction by conducting an event study based on the market model. The analysis utilizes return data from 24 palm oil company stocks listed on the BEI. We found that positive and significant abnormal returns occurred a few days before and after the event date, indicating an investor reaction to the MBG program. The variable abnormal returns suggest that the market reaction tends to be slow and spreads gradually and indirectly. The inconsistency in significant patterns indicates that market information is still developing, while also reflecting investors' cautious attitude toward government policies with broad impacts.
The Effect of Dividend Announcements on Stock Return Volatility Romli, Annisa Aliffia; Nofal, Nofal; Husnah, Husnah; Anisah, Anisah
Dinasti International Journal of Economics, Finance & Accounting Vol. 6 No. 5 (2025): Dinasti International Journal of Economics, Finance & Accounting (November - De
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v6i5.5241

Abstract

This study aims to examine the effect of dividend announcements on stock return volatility in companies included in the LQ45 index on the Indonesia Stock Exchange, particularly during the post-COVID-19 pandemic recovery period. Dividend information is regarded as an important signal for investors and can trigger market reactions that impact stock price fluctuations. The method used is an event study with the Wilcoxon Signed-Rank test to measure differences in stock return variance before and after dividend announcements over 5-day and 15-day periods. The results show a statistically significant increase in volatility during the 5-day period following the announcement (p = 0.043), but no significant change during the 15-day period. These findings indicate that dividend announcements trigger short-term reactions but do not have a lasting impact. This reflects that the Indonesian market is not yet fully efficient, and the price adjustment process to dividend information is still occurring gradually.