Political elections, abnormal returns and stock price volatility: the case of Greece

Koulakiotis, Athanasios; Papapanagos, Harry; Papasyriopoulos, Nicholas

doi:10.21511/imfi.13(1-1).2016.03

Cited by 5 publications

(7 citation statements)

References 20 publications

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“…The results of data analysis prove there is a market reaction to the announcement of the election results of the President and Vice President of Indonesia in 2019. The results of this study are consistent with the results of research conducted by Imelda and Anggraeni (2014), Savita andRamesh (2015), Kahn, et al (2015), Koulakiotis, et al (2016), Werth (2016), and Osuala, et al (2018). But it is not consistent with the results of research conducted by Chandra (2015), Kabiru, et al (2015), Sopyana and Yasa (2016), and Iyengar, et al (2017) where political issues do not affect investor decisions.…”

Section: Resultssupporting

confidence: 52%

“…The market is expected to react quickly when receiving information available when announcing the results of the general election. Several previous studies that have become empirical evidence of the relationship of political issues to market reactions as measured by abnormal returns were conducted by Imelda and Anggraeni (2014), Savita and Ramesh (2015), Khan, et al (2015), Koulakiotis, et al (2016) and Osuala, et al (2018). The results of these studies prove that political issues make investors able to obtain abnormal returns.…”

Section: Literature Review and Hypothesismentioning

confidence: 82%

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Market Reaction to The Announcement of General Election Result of The President and Vice President of Indonesia in 2019 (Study on LQ 45 Stock Index on The Indonesia Stock Exchange)

Pujaastawan¹,

Wiksuana²

2020

EJBM

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This study aims to determine the impact of political issues on market reaction when announcing the results of the 2019 Indonesian president and vice president election. The population in this study are all companies listed on the LQ45 Stock Index on the Indonesia Stock Exchange from February 2019 to July 2019. Sample taken by using the census method of 45 companies. The type of data used is quantitative and qualitative data obtained from secondary sources collected by the nonparticipant observation method. To test the information content, this study uses an event study approach. In this study there were two periods of events tested, namely the announcement of the results of the presidential and vice presidential elections in 2019 based on the quick count of the Survey Institute and the real count of the General Election Commission. To test the significance of abnormal returns the One Sample Test is used. The results of this study indicate that at the time of the announcement of the general election results based on the Survey Institute's quick count, there was a significant positive average abnormal return on the second day after the event date, while at the announcement of the general election results based on the General Election Commission's real count, there was no abnormal average significant return after the event date. The results concluded that the market must carefully search for information and be able to predict situations that are influenced by political issues to avoid risk.

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Section: Resultssupporting

confidence: 52%

Section: Literature Review and Hypothesismentioning

confidence: 82%

Market Reaction to The Announcement of General Election Result of The President and Vice President of Indonesia in 2019 (Study on LQ 45 Stock Index on The Indonesia Stock Exchange)

Pujaastawan¹,

Wiksuana²

2020

EJBM

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“…Tetapi, di hari kedua Indeks ini tidak melanjutkan penguatannya melainkan melemah cukup signifikan ke level 144,092. Secara empiris peristiwa politik lebih berpengaruh dalam jangka pendek dan berkurang dalam jangka panjang (Koulakiotis et al, 2016), dan untuk membuktikan pengaruh dari peristiwa pemilihan presiden tahun 2019 secara kuantitatif masih perlu dilakukan suatu kajian lebih lanjut.…”

Section: Gambar 1 Perubahan Harga Saham Indeks Idx80unclassified

Reaksi Pasar Terhadap Peristiwa Pemilihan Presiden Tahun 2019 Di Bursa Efek Indonesia

Yudiawan

Abundanti

2020

EJMUNUD

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Tujuan penelitian ini adalah untuk mengetahui reaksi pasar terhadap peristiwa pemilihan presiden di Indonesia tahun 2019 yang diteliti menggunakan variabel abnormal return dan trading volume activity. Penelitian ini menggunakan pendekatan event study dengan 11 hari event window. Sampel penelitian berdasarkan purposive sampling sebanyak 63 perusahaan yang tergabung dalam Indeks IDX80. Dari hasil uji normalitas diketahui data tidak berdistribusi normal, maka metode uji hipotesis yang digunakan adalah Wilcoxon Signed Rank Test. Hasil dari penelitian ini menunjukkan (1) Tidak terdapat reaksi pasar yang signifikan dilihat dari rata-rata abnormal return sebelum dan sesudah peristiwa pemilihan. (2) Terdapat reaksi pasar yang signifikan dilihat dari rata-rata trading volume activity sebelum dan sesudah peristiwa pemilihan. Kata Kunci: studi peristiwa, pemilihan presiden, abnormal return, trading volume activity.

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“…Observations on the Shenzhen and Shanghai Stock Exchange obtained evidence of stock cumulative abnormal returns for 5 (five) days before up to 10 (ten) days after 188 rumors were published through the media websites eastmoney.com and 10jqka.com.en (Zhang & Chen, 2016). Stock volatility also occurred in Greece in political election events (Koulakiotis, Papapanagos, & Papasyriopoulos, 2016). It means that the stock market also responds to current information and even future information, including political events.…”

Section: Introductionmentioning

confidence: 99%

Market Reaction on the Announcement of Elected President (The 2019 Presidential Election in Indonesia)

Fidiana

2020

jasf

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Investors tend to respond to political events information because they are considered to be supporting or risking the stability of the capital market, so they must immediately make investment decisions quickly. Unlike the election process in other countries, this five-yearly election in Indonesia is not just a regularity of changing authorities but also carries an ideological gamble. The 2019 election as a necessary test for Indonesia related to the issue of communist phobia: between secular and conservative. Different from previous research on political events that focus on the electoral period, this study aims to prove the information content of the presidential announcement in 2019 by using a window period of eleven days, which is five days before and five days after the announcements. Tests were conducted on 45 companies registered as LQ-45 companies in 2019. Different samples of paired tests were done using a paired t sample tool by comparing abnormal returns and the level of stock trading activity. By using various tests, this study proves the existence of significant differences in abnormal returns and trading activities in the period before and after the 2019 presidential announcement. So, it was concluded that the 2019 presidential announcement had information content that had an impact on obtaining abnormal returns for investors. This study also proves that investors respond to information and political events as part of their investment decisions. So that daily transaction fluctuations are indicated by a trend of increasing and decreasing selling and buying actions on a spot time

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Political elections, abnormal returns and stock price volatility: the case of Greece

Cited by 5 publications

References 20 publications

Market Reaction to The Announcement of General Election Result of The President and Vice President of Indonesia in 2019 (Study on LQ 45 Stock Index on The Indonesia Stock Exchange)

Market Reaction to The Announcement of General Election Result of The President and Vice President of Indonesia in 2019 (Study on LQ 45 Stock Index on The Indonesia Stock Exchange)

Reaksi Pasar Terhadap Peristiwa Pemilihan Presiden Tahun 2019 Di Bursa Efek Indonesia

Market Reaction on the Announcement of Elected President (The 2019 Presidential Election in Indonesia)

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