Indonesian Journal of Law and Economics Review
Vol 19 No 2 (2024): May
Finance Management

Covid-19 Shockwaves Disrupted the Indonesian Capital Market
Gelombang Kejutan Covid-19 Mengganggu Pasar Modal Indonesia


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  • Ricco Ardiansyah ,
  • Nurasik Nurasik*
Ricco Ardiansyah
Universitas Muhammadiyah Sidoarjo, Indonesia
Nurasik Nurasik
Universitas Muhammadiyah Sidoarjo, Indonesia *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/ijler.v19i2.1111
Published June 3, 2024
Keywords
  • Event Study,
  • Covid-19 Impact,
  • Indonesian Capital Market,
  • Abnormal Returns,
  • Trading Volume
How to Cite
Ardiansyah , R., & Nurasik, N. (2024). Covid-19 Shockwaves Disrupted the Indonesian Capital Market. Indonesian Journal of Law and Economics Review, 19(2), 10.21070/ijler.v19i2.1111. https://doi.org/10.21070/ijler.v19i2.1111

Copyright (c) 2024 Ricco Ardiansyah , Nurasik Nurasik

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

This study examines the impact of the Covid-19 pandemic on the Indonesian capital market by analyzing abnormal returns and trading volume activity in the LQ45 index stock group from 2018 to 2020. Using secondary data and a purposive sampling method, the research employs Paired Sample t-Test for hypothesis testing. The results show significant differences in abnormal returns and trading volume activity before and during the pandemic, indicating a strong market reaction to Covid-19. These findings underscore the need for strategies to mitigate the effects of global disruptions on the market.

Highlights:

1. Market Reaction: Significant changes in abnormal returns, trading volume during Covid-19.
2. Methodology: Uses secondary data, Paired Sample t-Test for analysis.
3. Focus: Examines LQ45 index stocks, daily prices, and volumes 2018-2020.

Keywords: Event Study, Covid-19 Impact, Indonesian Capital Market, Abnormal Returns, Trading Volume

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