Ricco Ardiansyah
Universitas Muhammadiyah Sidoarjo

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Covid-19 Shockwaves Disrupted the Indonesian Capital Market Ricco Ardiansyah; Nurasik Nurasik
Indonesian Journal of Law and Economics Review Vol 19 No 2 (2024): May
Publisher : Universitas Muhammadiyah Sidoarjo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21070/ijler.v19i2.1111

Abstract

This study examines the impact of the Covid-19 pandemic on the Indonesian capital market by analyzing abnormal returns and trading volume activity in the LQ45 index stock group from 2018 to 2020. Using secondary data and a purposive sampling method, the research employs Paired Sample t-Test for hypothesis testing. The results show significant differences in abnormal returns and trading volume activity before and during the pandemic, indicating a strong market reaction to Covid-19. These findings underscore the need for strategies to mitigate the effects of global disruptions on the market. Highlights: 1. Market Reaction: Significant changes in abnormal returns, trading volume during Covid-19.2. Methodology: Uses secondary data, Paired Sample t-Test for analysis.3. Focus: Examines LQ45 index stocks, daily prices, and volumes 2018-2020. Keywords: Event Study, Covid-19 Impact, Indonesian Capital Market, Abnormal Returns, Trading Volume