Prawira, Kevin Leonardo and Munaf, Alex Iskandar (2018) The Effect of Presidential Election in Indonesia and U.S.A to Indonesia Composite Index (IDX) From 1999-2014. Bachelor thesis, Swiss German University.

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Abstract

Political risk is one of the external factor that investor should face when creating the best portfolio for investment. There is uncertainty during Presidential election because election bring change to the regulations, hierarchy and etc. There might be change of regulations in certain aspects, which benefit some parties and vice versa. Hence, the right asset allocation is a must for profit maximization. Especially, in the era of globalization which make countries become more connected in many ways including political and financial sectors. Another country election might affect domestic stock market because nowadays market players can easily shift their money to other countries and major powerful countries have more ties to other countries. This study tries to help investors to know the movement of abnormal return during elections period. This study adopt even methodology that determines effects of certain events to an independent variable, which is Indonesia Composite Index in this research. Descriptive and Inferential Statistics are used to process the cumulative abnormal return data. Results are interpreted and analyzed. This research shows that abnormal returns are present during Presidential Election, however not all election periods lead to positive abnormal return.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Cumulative Abnormal Return; Election; Presidential; Stocks
Subjects:	H Social Sciences > HG Finance > HG4551 Stock exchanges
Divisions:	Faculty of Business Administration and Communication > Department of Business Administration
Depositing User:	Astuti Kusumaningrum
Date Deposited:	19 May 2020 13:29
Last Modified:	19 May 2020 13:29
URI:	http://repository.sgu.ac.id/id/eprint/572

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