Abstract : The aims of study are to analyze and evaluate the impact of COVID-19 outbreak on Indonesia Stock Exchange (IDX) performance before, during, and after the official announcement day on March 2nd, 2020. Five industry sectors were observed, i.e agriculture, property, manufacture, consumer, and mining sector. Event study analysis method is used to value the short-term influence of the announcement day on the selected stock market performance in Indonesia. The findings of the study indicated that manufacturing and consumer sectors had better stock performance with positive results of their abnormal return, unlike the agriculture and property sectors which showed the opposite result of their stock performance. The stock performance in the mining sector remained stable even after the announcement day. Indonesian Government, particularly the companies’ management, is expected to pay more attention to the aggrieved industries because of the negative effect of outbreaks, especially on the agriculture and property sector.
Keywords: COVID-19, Event Study, Abnormal Return, Stock Performance, Indonesia Stock Exchange.
Cited as :
Nugraha, A.T., Hakimah, Y., & Fawzi, AM., (2022). COVID-19 Pandemic and Performance of Indonesian Stock Market: An Event Study Analysis. Jurnal Economia, 18(2), 204-220. https://doi.org/10.21831/economia.v18i2.38821
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