Capital Market Reactions on The Event Of The American Presidential Election In 2016 (Case Study Of Listed Companies In Indonesia And American Stock Exchange)
Dwi Nita Aryani, Aris Andriyani
Dwi Nita Aryani
Available Online January 2018.
- https://doi.org/10.2991/icigr-17.2018.1How to use a DOI?
- stock, LQ45, DJIA, presidential election of America, market reaction
- 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.
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 -