Proceedings of the 18th International Symposium on Management (INSYMA 2021)

Local and National Covid-19 Cases and Stock Return: Evidence from Regions in Indonesia

Authors
Jordy Tila, Irwan Adi Ekaputra
Corresponding Author
Jordy Tila
Available Online 29 June 2021.
DOI
10.2991/aebmr.k.210628.013How to use a DOI?
Keywords
covid-19, local cases, national cases, abnormal return, local companies
Abstract

The stock market in Indonesia crashed during the Covid-19 pandemic. This paper aims to examine the relationship between the local and national Covid-19 cases with the abnormal return of the local companies in Indonesia. Previous studies have found that coronavirus has impacted the global stock market, including Indonesia, but there is a lack of research in the local area. This paper uses the event study model and regression panel data with a random-effect model. The statistical result shows a significant correlation between the growth of local cases into the average abnormal return of local companies in Indonesia; also, there is a significant correlation between growth national cases into the average abnormal return of local companies in Indonesia in the following day. In conclusion, the growth of local Covid-19 cases affects the average abnormal return of local companies’ stocks in Indonesia; meanwhile, national Covid-19 cases only impact the following days.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 18th International Symposium on Management (INSYMA 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
29 June 2021
ISBN
978-94-6239-400-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.210628.013How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Jordy Tila
AU  - Irwan Adi Ekaputra
PY  - 2021
DA  - 2021/06/29
TI  - Local and National Covid-19 Cases and Stock Return: Evidence from Regions in Indonesia
BT  - Proceedings of the 18th International Symposium on Management (INSYMA 2021)
PB  - Atlantis Press
SP  - 72
EP  - 78
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210628.013
DO  - 10.2991/aebmr.k.210628.013
ID  - Tila2021
ER  -