Department of Business Administration, Faculty of Social and Political Science Diponegoro University, Semarang, Indonesia.
World Journal of Advanced Research and Reviews, 2025, 25(03), 2103-2110
Article DOI: 10.30574/wjarr.2025.25.3.0942
Received on 18 February 2025; revised on 25 March 2025; accepted on 27 March 2025
On February 14, 2024, the Presidential Election of the Republic of Indonesia was held. The presidential election is a crucial moment that may influence various future policies, including economic and political decisions. This political event has the potential to significantly impact the capital market, especially stocks listed in leading stock indices such as LQ45 on the Indonesia Stock Exchange. This research is motivated by the importance of understanding the capital market's reaction to political events using Abnormal Return and Trading Volume Activity (TVA) indicators. This study employs an event study method with secondary data in the form of daily closing stock prices of companies listed in the LQ45 index for the February period. The analytical techniques used include descriptive statistics, normality tests, and the Wilcoxon Signed Rank Test. The results of the study indicate that there are no significant differences in Abnormal Return and Trading Volume Activity (TVA) before and after the Presidential Election. These findings suggest that the Presidential Election on February 14, 2024, did not have a significant impact on the LQ45 index. Therefore, investors are advised to analyze and evaluate all information carefully to ensure that investment decisions are made accurately and not based on incorrect or misleading information.
Event Study; Abnormal Return; Trading Volume Activity (TVA); Presidential Election
Preview Article PDF
Wisnu Armadenis nd Saryadi. The capital market reaction to the Indonesian presidential election on February 14, 2024 on The LQ45 Index of The Indonesia Stock Exchange. World Journal of Advanced Research and Reviews, 2025, 25(03), 2103-2110. Article DOI: https://doi.org/10.30574/wjarr.2025.25.3.0942.
Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0