Journal of Indonesian Applied Economics
Vol 7, No 1 (2017)

TRUMP’S ELECTED SHOCK EFFECT IN INDONESIAN STOCK MARKET

Sagita, Vietha Devia (Unknown)



Article Info

Publish Date
20 May 2017

Abstract

It is inevitable that the presidential election in the United States can caused stock market fluctuations both in the United States alone as well as in other countries, for example Indonesia. Using regression method and chow test this study aimed at the effects before and after the election of Donald Trump as president of the United States on November 8, 2016. Using the data series shares the value of DJIA and ICI, this study analyzes the emergence of shock due to the change of president in United Staten share prices at the stock market in Indonesia. Based on the chow test result, the election of Donald Trump can provide a shock effect on ICI as well as DJIA, because the value of 6.917956 F count is larger than the value of 3,93 F table. DJIA positive influence on the value of ICI shares due to the election of Donald Trump is significantly below 5% at 1855.782. Meanwhile, before the election of Donald Trump DJIA has a negative influence on the ICI for - 1407.59. Based on that we can conclude that the election of Donald Trump bring a good impact on the growth of the Indonesian stock market.

Copyrights © 2017






Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...