The Impact of the Covid-19 Pandemic on Stock Prices and Stock Price Volatility in Agricultural Companies on the Indonesia Stock Exchange

DOI

10.2991/978-94-6463-128-9_28How to use a DOI?

Keywords

Stock Price; Price Volatility; Covid-19; Agricultural Company

Abstract

The Covid-19 pandemic has had a tremendous impact on various aspects of life, including the fields of health, economy, industry, and agriculture in Indonesia. This study aims to analyze the impact of the Covid-19 pandemic on stock prices and stock price volatility in agricultural companies in Indonesia. The data used in this study is daily stock price data of agricultural companies listed on the Indonesian stock exchange from December 2019 to May 2020. To answer the research objectives, a paired sample t-test was conducted on stock prices and daily stock price volatility of agricultural companies before the Covid-19 pandemic (data from December 5, 2019 to March 1, 2020) compared to stock prices and daily stock price volatility of agricultural companies after the Indonesian government announced cases of Covid-19 (March 2, 2020 to May 31, 2020). The volatility of stock prices of agricultural companies is measured by following the approach taken by Parkinson (1980). The results of the analysis show that the Covid-19 pandemic has a negative and significant impact on stock prices of agricultural companies in Indonesia that is the average stock price of agricultural companies decreased by 34.01%. Furthermore, the results of the study also show that the Covid-19 pandemic has caused the dynamics of stock prices of agricultural companies in Indonesia to become more volatile. This provides an understanding that the COVID-19 pandemic has resulted in increased business risk for agricultural companies in Indonesia along with the dynamics of stock price movements.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Reazi Agusman
AU  - Jangkung Handoyo Mulyo
AU  - Irham
PY  - 2023
DA  - 2023/04/19
TI  - The Impact of the Covid-19 Pandemic on Stock Prices and Stock Price Volatility in Agricultural Companies on the Indonesia Stock Exchange
BT  - Proceedings of the 3rd International Conference on Sustainable Agriculture for Rural Development (ICSARD 2022)
PB  - Atlantis Press
SP  - 275
EP  - 283
SN  - 2468-5747
UR  - https://doi.org/10.2991/978-94-6463-128-9_28
DO  - 10.2991/978-94-6463-128-9_28
ID  - Agusman2023
ER  -