Stock Market Reaction During Coal Export Ban Policy
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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Bekkers, V., Fenger, M., Scholten, P. (2017), Public Policy in Action: Perspectives on the Policy Process, Cheltenham: Edward Elgar Publishing Limited.
Beaver, W., H. (1981). Understanding and Conducting Event Studies. Journal of Business Finance & Accounting, Vol. 56(No.1), p. 23-27.
Chen, D., S., Y. & Liew, V., K., S. (2019). Stock Return: Evidence from The Ace Market in Malaysia. Asian Journal of Finance & Accounting, Vol. 11(No.2), p. 169-185.
Fama, E., F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, Vol. 25(No.2), p. 383-417.
Fauziah, L. & Venusita, L. (2021). The Reaction of Capital Markets in Indonesia, Singapore, Malaysia, and Thailand towards The Announcement of Lockdown Policy during The Beginning of The Covid-19. Journal of Accounting, Entrepreneurship, and Financial Technology, Vol. 2(No.2), p. 109-132.
Handayani, E., Rahmawati, A., Haryanto, E., Wahyuni, S. (2020). Abnormal return of Indonesian banking shares in the time of COVID 19: An event study on the announcement of government regulation, POJK 11 of 2020. International Journal of Research Business and Social Science, Vol. 9(No.7), p. 108-114.
Hartono, J. (2018), Studi Peristiwa: Menguji Reaksi Pasar Modal Akibat Suatu Peristiwa, Yogyakarta: BPFE.
Jegarut, C., T., S., Rahayu, C., W., E., Yulita, I., K. (2021). The Capital Market Response To The Announcmen of The 2019-2024 Indonesia Onward Cabinet System (Empirical Study on Companies Listed on Kompas Index 100). Jurnal Keuangan Bisnis, Vol. 19(No.2), p. 147-159.
Machmuddah, Z., Utomo, S., D., Suhartono, E., Ali, S., Ghulam, W., A. (2020). Stock Market Reaction to COVID-19: Evidence in Customer Goods Sector with the Implication for Open Innovation. Journal of Open Innovation: Technology, Market, Complexity, Vol. 6(No.99).
Minzani, N., M., Laba, A., R., Rahim, F., R. (2021). The Effect of Stock Trading Volume, Abnormal Return, and Bid-Ask Spread Before and After Stock Split Events on Companies on the Indonesia Stock Exchange. Hasanuddin Journal of Applied Business and Entrepreneurship (HJABE), Vol. 4(No.4).
Mujib, B. & Candraningrat, I., R. (2021). Capital Market Reaction to Covid-19 Pandemic on LQ45 Shares at Indonesia Stock Exchange (IDX). The American Journal of Humanities and Social Sciences Research (AJHSSR), Vol. 5(No.3), p. 74-80.
Muthaharia, S., A. & Yunita, I. (2021). Analysis of Abnormal Return and Trading Volume Activity Difference Before and After the Announcement of New Normal Implementation by President Joko Widodo: Study on LQ 45 in the Indonesia Stock Exchange. International Journal od Advanced Research in Economics and Finance, Vol. 3(No.1), p. 14-20.
Purnasari, L., H., Siregar, H., Maulana, T., N., A. (2015). Impacts of Indonesia Raw Minerals Export Ban on Abnormal Return and Trading Volume: An Event Study on Stocks of Metals and Minerals Mining Subsector in IDX. Asian Journal of Business and Management, Vol. 3(No.6), p. 460-469.
Rahadi, F. & Rahmi, F. (2018). The Effect of Internet Financial Reporting and Voluntary Disclosure on Trading Volume Activity. Advances in Social Science, Education and Humanities Research, Vol. 292, p. 579-583.
Suratna, Widjanarko, H., Utomo, H., S. (2021). Does Trading Volume Activity React To The Announcement of Large-Scale Social Restrictions During The Covid-19 Pandemic?. RSF Conference Series: Business, Management and Social Sciences, Vol. 1(No.3), p. 301-307.
Suryanto (2015). Analysis of Abnormal Return Before and After the Announcement of Investment Grade Indonesia. International Journal of Business and Management Review, Vol. 3(No.1), p. 11-23.
Wibowo, M., S. & Sukmaningrum, P., S. (2019). Stock Market Reaction to the Tax Amnesty Announcement. Indonesia Capital Market Review, Vol. 11, p. 108-118.
Published
2022-10-20
Section
Original Articles
Copyright (c) 2022 Nicodemus Halim
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