Proceedings of the 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)

Capital Market Reactions on The Event Of The American Presidential Election In 2016 (Case Study Of Listed Companies In Indonesia And American Stock Exchange)

Authors
Dwi Nita Aryani, Aris Andriyani
Corresponding Author
Dwi Nita Aryani
Available Online January 2018.
DOI
https://doi.org/10.2991/icigr-17.2018.1How to use a DOI?
Keywords
stock, LQ45, DJIA, presidential election of America, market reaction
Abstract
The aim of this study is to analyze the reaction of the Indonesian and American capital markets to the events of the 2016 America presidential election. The method used in this research is event study to analyze market reaction and test t-test (paired samples t-test) to analyze difference of high low spread (high and low price difference), stock price average, stock returns and trading activity volumes (TVA) before and after election events. For Indonesia, the sample in this research is 30 companies of LQ45 while for America is 30 companies of Dow Jones Industrial Average (DJIA). T-test were be used to test market reactions before and after the events of the presidential election. The results show that in Indonesia, statistically before and after the US presidential election, the average spreads, stock prices and TVA are different and decrease. While in America, the spread value, the average stock price and TVA are different and increased. The US presidential election in 2016 contains meaningful information for investors, where president election events can be one of the factors that affect the capital market.
Open Access
This is an open access article distributed under the CC BY-NC license.

Download article (PDF)

Proceedings
1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2018
ISBN
978-94-6252-459-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/icigr-17.2018.1How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Dwi Nita Aryani
AU  - Aris Andriyani
PY  - 2018/01
DA  - 2018/01
TI  - Capital Market Reactions on The Event Of The American Presidential Election In 2016 (Case Study Of Listed Companies In Indonesia And American Stock Exchange)
BT  - 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)
PB  - Atlantis Press
SP  - 1
EP  - 5
SN  - 2352-5398
UR  - https://doi.org/10.2991/icigr-17.2018.1
DO  - https://doi.org/10.2991/icigr-17.2018.1
ID  - Aryani2018/01
ER  -