Market Reaction on the First Reshuffle of “Kabinet Kerja” at LQ 45

DOI

10.2991/icebef-18.2019.81How to use a DOI?

Keywords

kabinet reshuffle announcement; market reaction; LQ 45 index

Abstract

The purpose of this study was to know the difference of average abnormal return at LQ 45 between before and after announcement reshuffle of “Kabinet Kerja”. This study used explanatory survey method. The total population of 45 companies. Daily data for 6 days’ observation each 3 days before announcement and 3 days after announcement covering closing stock price. Hypothesis testing was used paired sample t test. The results showed that there is no significant difference between average abnormal return before and after the announcement reshuffle of “Kabinet Kerja”. This indicates that the reshuffle announcement on “Kabinet Kerja” did not generate a market reaction because the reshuffle issue has been widely discussed by experts in their field on various media so investors have been able to predict before the reshuffle was announced.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Soritaon Siregar
AU  - Nita Kanya
PY  - 2019/05
DA  - 2019/05
TI  - Market Reaction on the First Reshuffle of “Kabinet Kerja” at LQ 45
BT  - Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)
PB  - Atlantis Press
SP  - 361
EP  - 365
SN  - 2352-5428
UR  - https://doi.org/10.2991/icebef-18.2019.81
DO  - 10.2991/icebef-18.2019.81
ID  - Siregar2019/05
ER  -