<![CDATA[Purpose: This study analyzes the capital market reaction to MUI Fatwa Number 83 of 2023 among boycott-affected and comparison companies. Research Methodology: This study employs Using a quantitative comparative event-study design grounded in Signaling Theory, the study examines seven boycott-affected companies and three comparison companies, comparing abnormal return, trading volume activity, and stock volatility over 239 trading days before and after the fatwa's issuance. Data were analyzed using descriptive statistics, normality tests, the Wilcoxon Signed-Rank Test (within-group), and the Mann-Whitney U test (between-group). Results: The results show abnormal return differed significantly among boycott-affected companies but not comparison companies. Trading volume activity and stock volatility showed significant differences in both groups over the 12-month period; an additional 30-day analysis found significant volatility changes only among boycott-affected companies. Between-group analysis revealed a significant difference in abnormal return change but not in trading volume or volatility changes. Conclusions: The findings indicate that the market response to the fatwa varied by indicator, company group, and observation period. The distinct abnormal return effect among boycott-affected companies supports the view that investor-relevant information is incorporated into stock prices, though broader market and firm-specific factors likely also contributed, so findings should not be read as exclusive causal evidence. Limitations: This study is limited by the small, unbalanced sample (seven versus three companies) limits statistical power, and the 12-month window includes other events that make isolating the fatwa's effect difficult. Contributions: This study offers empirical evidence on capital market responses to a socio-religious event, highlighting the importance of examining multiple market indicators, company groups, and time horizons, with implications for investors, companies, and future researchers]]>
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