ANALYSIS OF DIFFERENCES IN ABNORMAL RETURNS AND TRADING VOLUME ACTIVITY BEFORE AND AFTER THE IMPLEMENTATION OF THE MINING AND BAKING LAW (PP NO 1 OF 2017) IN MINING COMPANIES ON THE IDX

Title: ANALYSIS OF THE DIFFERENCES IN ABNORMAL RETURNS AND TRADING VOLUME ACTIVITY BEFORE AND AFTER THE IMPLEMENTATION OF THE MINING AND BAKING LAW (PP NO 1 OF 2017) IN MINING COMPANIES ON THE IDX

Author: DEVI NOVITASARI

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research examines the influence of the signing of a new government policy, namely Government Regulation No.1 of 2017 concerning the fourth amendment to Government Regulation no. 23 of 2010 concerning the implementation of Mineral and coal mining business activities regarding capital market reactions. The market reaction is reflected by differences in abnormal returns and differences in the value of trading volume activity. The aim of this research is to find out whether there are differences in abnormal returns and trading volume activity before and after the signing of PP No. 1 of 2017. This research uses a quantitative approach. This research is an event study research with a window period of 11 days (5 days before the signing date of PP No. 1 of 2017, at the time of signing, and 5 days after the signing date of PP No. 1 of 2017). The results of this research indicate that the market reacted normally to this policy as indicated by no significant differences in abnormal returns and trading volume activity before and after the regulation (PP No. 1 of 2017) was implemented

Keywords: Abnormal Return, Trading Volume Activity, Event Study

Sources: http://repository.unair.ac.id/80379/