|dc.description.abstract||Arto Kumoro (2011). The Impact of Presidential Election Day on LQ 45
Stock Index Movements. Yogyakarta, International Program, Faculty of
Economy, Universitas Islam Indonesia.
This research aims to examine the effect of a political event on the
capital market activities, especially on the Indonesia Stock Exchange. The
researcher examines the market reaction of Indonesia Stock Exchange around
presidential election periods (7th July 1999, 5th of July 2004, 20th of September
2004, and 8th of July 2009). This research tries to examine the effect of the
event reflected by abnormal return before and after the election periods.
This study took the data from 45 companies (LQ-45) in Indonesia
Stock Exchange and it used the methodology of event study. The event dates
are twelve days before and twelve after the election periods. The data is
secondary data that were collected from historical price of stock.
The main result of this research showed that the political event does
not significantly affect the stock return between pre and post the event. The
result indicates that the political election periods had no impact to the
investors in Indonesia Stock Exchange.
Keyword: Political Event, LQ 45, Event Study, Abnormal Return, Indonesia