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Jurnal Bisnis, Ekonomi, Manajemen, dan Kewirausahaan Abnus Publisher

The Impact of COVID-19 on Stock Price Changes

2021-05-16
Published
1-18
Pages
OPEN
Access
DA
Dewi Anggraini
Fakultas Bisnis dan Ilmu Sosial, Program Studi Akuntansi, Universitas Dian Nusantara, Jakarta, Indonesia
Abstract

Purpose: This study aims to determine the capital market’s reaction to the announcement of the arrival of the COVID-19 virus in Indonesia.

Research Methodology: Data were collected at the time of the announcement, implementation of the Large-Scale Social Restrictions or Pembatasan Sosial Berskala Besar (PSBB) policy to combat the COVID-19 pandemic, and announcement of the resumption of public transportation. The event window used in this study spanned 11 days, with five days before and five days after the event announcement, and one event date on that day.

Results: The paired sample t-test results show a significant difference in stock prices before and after the announcement of the first COVID-19 case in Indonesia. Price share experience decline compared to before existence case COVID-19. When the PSBB policy was implemented and the announcement of the resumption of transportation modes was made, there was no significant difference in share prices before and after the event.

Conclusions: The announcement of the first COVID-19 case in Indonesia had a significant negative effect on stock prices, as share prices declined compared to the period before the announcement. Implementation of PSBB and the announcement of the resumption of transportation modes did not cause significant changes in stock prices, indicating a weaker market reaction.

Limitations: This study only examined companies in the telecommunications, consumer goods, and tourism sectors using a short event window of eleven days.

Contributions: This research contributes empirical evidence on how the Indonesian capital market responded to COVID-19 related announcements. The findings help investors and policymakers understand market reactions during crisis conditions.

Capital Market Reaction COVID-19 Event Study PSBB Policy Stock Prices
How to Cite
Anggraini, D. (2021). The Impact of COVID-19 on Stock Price Changes. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 1(1), 1-18. https://doi.org/10.52909/jbemk.v1i1.22
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How to Cite

Anggraini, D. (2021). The Impact of COVID-19 on Stock Price Changes. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 1(1), 1-18. https://doi.org/10.52909/jbemk.v1i1.22
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