Stock Market Reaction During Coal Export Ban Policy

Nicodemus Halim

doi:10.36418/syntax-literate.v7i10.13090

Nicodemus Halim Universitas Bina Nusantara

DOI: https://doi.org/10.36418/syntax-literate.v7i10.13090

Keywords: Stock market reaction, Coal export ban, Government policy

Abstract

The Indonesian government decided to ban coal export activities from 1-31 January 2022. This was done because the domestic coal stock was almost depleted, so coal companies had to fill the domestic coal stock first. Then the government announced that after 11 days, the coal export ban policy was eased. The coal export ban policy and its easing have caused the coal stock market to experience various reactions. This study aims to analyze the market reaction based on abnormal return and trading volume activity before and after the coal export ban policy and its easing. Hypothesis testing using paired sample t-test for data that is normally distributed and Wilcoxon signed-rank test for data that is not normally distributed with an observation period of 3 days before and 3 days after. The result of this research shows that there is no difference in market reaction based on abnormal returns and trading volume activity before and after the coal export ban policy and its easing.

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