BOMB EVENTS AND STOCK MARKET REACTIONS ON THE IDX

Title: BOMB EVENT and STOCK MARKET REACTION ON THE IDX

Author: Nur Azmi Rifai

Affiliations : Master of Management Science Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research is an event study research that examines market reactions to the bombings that occurred in Indonesia in the period 2002 - 2009. There were five bombing incidents that were categorized as national scale. This research uses the Efficient Market Hypothesis theory. The variable used is average abnormal return. This research is quantitative research using 33 samples of companies listed on the IDX in the transportation sub-sector, restaurant sub-sector and tourism and hospitality sub-sector. The results of this research are first, there is no market reaction which is reflected in the average abnormal return around the date of the bomb incident.

Keywords: bomb event, EMH, market reaction, shares, abnormal returns

Sources: http://repository.unair.ac.id/38422/