<![CDATA[In 2014, Indonesian people implement Presidential Election on 9 July 2014 that the result was announced by the Election Commission (KPU) on 22 July 2014. This research aims to find empirical evidence of difference in average abnormal return and trading volume activity before and after the announcement of the 2014 Presidential Election result. This research is an event study that started in 3 days before (17 July 2014) up to 3 days after (25 July 2014). Using 33 stock on Kompas100 index as samples that selected by purposive sampling method, this research use secondary data obtained from Indonesia Stock Exchange website (http://www.idx.co.id/). Using market model in expected return calculation and also Scholes and Williams method for 3 days period lag and lead in beta correction, this research includes market efficiency testing and hypothesis testing in data analysis method. The results show based on paired-samples t-test, it can be concluded that there is no difference in the average abnormal return significantly before and after the announcement of the 2014 Presidential Election result, but there is difference in average trading volume activity significantly before and after the announcement of the 2014 Presidential Election result. Furthermore, based on one-sample t-test, it can be concluded that Indonesia capital market is efficient market in semistrong form. Keywords: 2014 Presidential Election, abnormal return, trading volume activity, event study.]]>
