2013 SYIAH KUALA UNIVERSITY October 2-4, 2013. AAC Dayan Dawood, Darussalam, Banda Aceh, Indonesia
thrd THE 3 ANNUTHE 5 ANNUALAL INTERN INTERNAATIONALTIONAL C CONFERENCEONFERENCE S SYIAHYIAH K KUALAUALA UNIVER UNIVERSITYSITY (AIC – UNS(AIC - UNSYIAH)YIAH) IN CIN ONJUNCCONJUNCTIONTION WITH WITH THE 2 INTERNTHEnd 8th CHEMICALATIONAL C ENGINEERINGONFERENCE ON MUL ON SCIENCETIDISCIPLIN AND APPLICAARY RESETION ARCH (ChESA)(ICMR)
AAC Dayan Dawood, Darussalam - Banda Aceh, Indonesia October 2-4, 2013
SOCIALBOOK OF ABS SCIENCESTRA CHAPTERCTS
AAC Dayan Dawood, Darussalam - Banda Aceh, Indonesia September 9 - 11 , 2015
SYIAH KUALA UNIVERSITY PRESS 2013 ISSN : 2089-208X Proceeding of The 5th Annual International Conference in conjunction with The 8th Chemical Engineering on Science and Application 9-11 September 2015, Banda Aceh - Indonesia
Editor in Chief: Dr.rer.pol. Heru Fahlevi M.Sc (Syiah Kuala University, Indonesia)
Editors: Dr. Hasan Basri (Syiah Kuala University, Indonesia) Dr. M. Shabri Abd. Majid, M.Ec (Syiah Kuala University, Indonesia) J-Prof. Dr. Sebastian Vollmer (Georg-August-Universität Göttingen, Germany) Associate Professor Anthony Kuo Ph.D (Fu Jen Catholic University, Taiwan) Dr. Yunisrina Qismullah Yusuf, S.Pd., M. Ling (Syiah Kuala University, Indonesia) Assistant Professor Dr. Pairote Bennui (Thaksin University, Thailand) Associate Professor Dr. Jane Teng Yan Fang (Universiti Pendidikan Sultan- Idris, Malaysia) Professor Dr. Ian Robottom (Deakin University, Australia) Associate Professor Dr. Mohammad Ali Salmani Nodoushan (Iranian Institute for Encyclopedia Research, Indonesia) Dr Astri Yulia, S.Pd., M.S. (Syiah Kuala University, Indonesia)
ISSN: 2089-208X
Copyright © 2015
Printed September 2015 CONTENT – Social Sciences
Editorial Board Message from the Rector Message from the Chairman No Scientific Papers Pages Keynote Speaker: The Aftermath of Aid: Assessing safety and sustainability in Aceh, Indonesia a decade after the 2004 1 tsunami Patrick Daly (Australia)
A. Economics 2 1 A Poverty Analysis Of Small Fishermen in Banda Aceh 3 Indra and Muhammad Nasir (Indonesia) 2 Behind a cup of coffee: challenges faced by smallholder coffee farmers in Gayo Highland, Indonesia 10 Wardah Hasyim (United Kingdom/Indonesia) 3 Factors Affecting the Food Security of Farmer Households in Aceh Province 17 Srinita (Indonesia) 4 Does Government’s aid matter? Community Recovery Post 2014 24 Kelud Eruption Muhammad Riza Nurdin (Australia) The Impact of Rice Assistance for the Poor (Raskin) on the Demand Elasticity of Food in the Low Income Population in Aceh 25 5 Suriani, Diana Sapha, Cut Zakia Rizki (Indonesia) The Relationship between Interest and Inflatiotowards Bank 6 Profit and Bad Credit at Bank Aceh 35 Ghazali Syamni, Qisfir and Dini Rizki (Indonesia) An Economic Evaluation of Galian C Mining on People’s Welfare 7 Aceh Utara 40 Rusydi Abubakar and Irham Fahmi (Indonesia)
B. Management and Business 44 A Study of the Establishment of South Tangerang City 8 45 Fernandes Simangunsong (Indonesia) The Impact of Acquisition on Acquirer companies’ Financial 9 Performance 60 Muhammad Syukur and Fauziah A. Fitri (Indonesia) The Relation of Profitability and Solvability to Price Earning Ratio and Price to Book Ratio (An Empirical Study on Manufacturing 10 66 Companies Listed on The Indonesia Stock Exchange) Heru Fahlevi and Geubrina Ria Andarint (Indonesia) The Moral Hazard on Financing in the Indonesian Banks 11 74 Evi Mutia and M. Akhyar Hafiz (Indonesia) The Influence of Capital Structure, Trading Volume, and Market 12 Capitalization on Stock Return (An Empirical Study on LQ45 85 Index Companies Listed on The Indonesia Stock Exchange) Rahmi Nabila and Evayani (Indonesia) The Influence of Liquidity, Profitability, and Dividend Payout Ratio to Stock Price (An Empirical Study on LQ45 Companies 13 93 Listed on The Indonesia Stock Exchange) Nurjannah and M. Rizal Yahya (Indonesia) The Impact of Indonesia Presidential Election Year 2014 on Abnormal Return and Trading Volume Activities of Stocks in 14 Indonesia Stock Exchange (Event Study on Advertising Printing 100 Media Stocks Listed on IDX) Rahmawaty and Riezky Ryatun Putri (Indonesia) Creating Brand Image by Using Epic Model Among Management Post Graduate Students at Syiah Kuala University Banda Aceh (A 15 107 Study at Aqua Television Ads) Yusniar and Sulaiman (Indonesia) Towards better Financial Reporting and Accountability: The Role 16 of Auditing in Public Sector Institutions 117 Intan Farhana and Hasan Basri (Indonesia) Creating Market Orientation and Business Culture to Increase 17 SMEs’ Performance in Aceh Provinsi 123 Muhammad Adam (Indonesia) Application of Importance Performance Analysis in Assessing the 18 Service Quality of Night Bus Transportation 133 Kurnia Asni and Syafruddin Chan (Indonesia) Interdependence Model of Human Resources System, 19 Organizational Strategy and Organizational Performance 146 Audia Junita (Indonesia) The Implementation of CAMEL and Earning Management in 20 Private Commercial Banks of Foreign Exchange in Indonesia 152 Chairil Akhyar, Ria Aristantia, and Ghazali Syamni (Indonesia) Customer Satisfaction at Hospital Service – A Literature Study 21 157 Halimatussakdiah and Ade Irma Suryani (Indonesia) The Influence of Profitability, Leverage, Liquidity and Asset Management on Bond Ratings (Empirical Study on Non-Financial 22 Company Listed on Indonesia Stock Exchange Year 2012-2014) 163 Jerryanda Pratama Putra, Mulia Saputra, and Muhammad Arfan, (Indonesia) Stock Market Calendar Anomalies: An Empirical Evidence from 23 Indonesia 170 Faisal (Indonesia) Monitoring of Manager and Competitive Advantage of Financial 24 Institutions: Banks and Non-Bank 179 Jummaini, Said Musnadi,Naufal Bachri (Indonesia) The Credibility and Performance of Islamic Banking - 25 Reconceptualizing the Model Service-Profit Chain 187 Abdul Rahman Lubis and Naufal Bachri (Indonesia) Antecedents of Brand Loyalty for Mobile Telecommunications 26 Services 196 Mariyudi (Indonesia) Salniza Bt Md. Salleh and Zolkafli Husin (Malaysia) 27 The Customer Trust toward Islamic Banks - A study based on 205 marketing approach Hafasnuddin (Indonesia) A Survival Story of A Print Newspaper in Malaysia: A Case Study of Berita Harian 28 214 Siti Suriani Othman, Mohd Faizal Kasmani, Rosidayu Sabran, Noor Adzrah Ramle (Malaysia) The Effects of Special Autonomy Fund and Oil and Gas Revenue Sharing on Education Spending and the Quality of Education: The 29 215 case of Districts and Cities in Aceh Isa, M., Islahuddin, and Nadirsyah (Indonesia) Simplifying Financial Accounting for Villages Fund Control – 30 Lessons from Villages in Aceh 221 Dasmi Husin (Indonesia) Brand Image and Behavior of Aceh Society 31 229 Adnan and Syamsul Bahri (Indonesia)
C. Art, History and Education 235 Linking Acehnese Students’ Motivation in English Language 32 Learning to their English Scores 236 Yunisrina Qismullah Yusuf, Nurul Inayah, Munilya Maulida (Indonesia) Multimedia-Based Worksheet as Teaching Material in the 33 Material of Sub Invertebrates 243 Ruqiah Ganda Putri Panjaitan and Titin (Indonesia) The Indonesian EFL students’ Expectation towards their Native 34 English Speaking Teachers 250 Sofyan A.Gani,Tengku Maya Silviyanti, and Dara Junita (Indonesia) Authentic Materials in Teaching English as a Foreign Language in 35 Syiah Kuala University Indonesia 256 Diana Fauzia Sari (Indonesia) The Importance of Course Design in an ELT Class 36 262 Diana Achmad and Rahmi Fhonna (Indonesia) The Correlation between Reading Motivation and Reading 37 Achievement of EFL Learners 267 Zulfadli A. Aziz, Yunisrina Qismullah Yusuf, Moriyanti (Indonesia) A Linguistic Tsunami: an early warning system for languages at 38 risk 274 Zulfadli A. Aziz (Indonesia) and Rob Amery(Australia) Investigating Teacher-Centered Approach in Relation to Teacher’s Religious Beliefs and Attitudes in Teaching Chemistry 39 282 in the Classroom Habibati (Indonesia) Analysis Graphically of Description Students and High School 40 Teachers about Atom Concept 289 A.Halim, Susilawati, and Susanna (Indonesia) The Roles of Action Research in Strengthening Professional 41 Practice of English Teachers 296 Yusnimar (Indonesia) Promoting Environmental Awareness of Pre-service Chemistry 42 302 Teacher Through Learning Enriched values Sulastri, Dasim Budimansyah, and Wahyu Sopandi (Indonesia) Inclusive Education Approach to Build an Entrepreneurial Character of Children 43 309 Ike Junita Triwardhani, O. Hasbiansyah, Anne Maryani and Dede Lilis Ch, (Indonesia) The Development of Volcanism Pop-up Book for Junior High 44 School 318 Sri Adelila Sari and Marhamah (Indonesia) Developing Chemistry Practicum Module With Science, 45 Technology, Engineering, and Mathematics Approach 323 M. Adlim, Latifah Hanum, and Ayunda Ahlaini Melala Toa (Indonesia) Using Manipulatives to Teach Linear Equations 46 331 Linda Vitoria (Indonesia) Proceedings of The 5th Annuual International Conference Syiah Kuala University (AIC Unsyiah) 2015 In conjunction with The 8th International Conference of Chemical Engineering on Science and Applications (ChESA) 2015 September 9-11, 2015, Banda Aceh, Indonesia
The Impact of Indonesia Presidential Election Year 2014 on Abnormal Return and Trading Volume Activities of Stocks in Indonesia Stock Exchange (Event Study on Advertising Printing Media Stocks Listed on IDX)
1Rahmawaty and 2Riezky Ryatun Putri
1,2Department of Accounting, Faculty of Economics, Syiah Kuala University, Darussalam, Banda Aceh 23111, Indonesia
Abstract The purposes of this research are to examine the impact of Indonesia Presidential Election year 2014 on the average of abnormal return and the average of trading volume activities on Advertising Printing Media Companies listed on the Indonesia Stock Exchange before and after the Presidential Election from 8th July 2014 until 10th July 2014. This research used event study method that observed the average of abnormal return and trading volume activities one day before, event date, and one day after the Presidential Election year 2014. This research used secondary data obtained from the Indonesia Stock Exchange and the Indonesia Capital Market Directory (ICMD). The populations of this research are all companies under Advertising Printing Media stocks listed on IDX. The results of this research are (1) There was no significant difference in the average of abnormal return before and after the presidential election year 2014. It is due to semi-strong type of capital market of Indonesia, therefore the invetors did not respond quickly to the information or events that happened in Indonesia. (2) There was no significant difference in the average of trading volume before and after the presidential election year 2014. It was because of no demand from investors to trade their stocks, the investors assumed that the event was not a big event that affects them to trade their stocks in market.
Keywords: Abnormal return, trading volume activities, event study, Indonesia Presidential Election year 2014
Introduction Companies are a medium of capital market to obtain funds from investors and plays an important role in the economic system of a nation. It is related to the two functions of capital market which are economic functions and financial functions (Darmadji, 2002). According to Alwi (2003), there are several factors that affect stock prices or stock price index, these factors are divided into two major factors which are internal factors (micro environment) and external factors (macro environment). Politics is one of the components in the external environment or non-economic factors that affect the volatility of stock price as mentioned earlier. Although political conditions or political issues do not have a direct relationship with the dynamics of the capital markets, political issues still play an important role in affecting the stock market price. Political events such as government shifting, political riots, the announcement of new cabinets, and other political issues will affect the volatility of the stock price and the trading volume in the stock market, because political events relate to the economic stability of the country (Nurhaeni, 2009).
100 Proceedings of The 5th Annuual International Conference Syiah Kuala University (AIC Unsyiah) 2015 In conjunction with The 8th International Conference of Chemical Engineering on Science and Applications (ChESA) 2015 September 9-11, 2015, Banda Aceh, Indonesia
According to Jogiyanto (2009), the information testing is to know the reaction of an announcement. If the announcement contains information, the market is expected to react at the time when the information accepted. Market reaction is indicated by the changes in securities price. This reaction can be measured by using the return as the value of price changes or by using abnormal return. The announcement which has information content will give abnormal return to the market and vice versa. Besides using the abnormal return, capital market reaction to the information can also be viewed through trading volume activities, if investors assess the event that contains information then these events will result in decision-making trading above the normal decision-making trading.
Some previous researches had been done with different results. A research done by Kabela (2009) about the impact of national presidential election to LQ-45 stocks showed that there was an average of the abnormal return around the national election. The Paired Sample T- Test showed that there was no significant abnormal return around the national election. It showed that the information received by investors was relatively the same. Munari (2004) who conducted the research about the reaction of Indonesia Stock Exchange to the election of Susilo Bambang Yudhoyono as a President of The Republic of Indonesia 2004-2009 period found that there was no statistically significant difference in the average of the abnormal return and trading volume activities before and after the event.
Another event study research done by Sirait et al., (2012) about the impact of the finance minister shifting in 2010 to the banking company stock showed that there was an average of the abnormal return during the event period. The research found that there was a significant difference of the average abnormal return before and at the date of finance minister shifting. Lamasigi (2002) who conducted the research about the reaction of Indonesia Stock Exchange to the Presidential Election on July 23th, 2001 found that there was no statistically significant difference in the average of the abnormal return before and after the event. The research about the impact of American presidential elections and return of the defense industry st ocks by Homaifar et al., (1998) showed that there was a significant positive of the abnormal return on Defense Industry Stocks.
The phenomenon of the presidential election impacts on the stock price and trading volume was proven when the news about the declining of VIVA and MNCN stock prices after the presidential election, as stated in Kompas (July 10th, 2014), “Saham VIVA dan MNC Anjlok akibat “Quick Qount” Menangkan Prabowo”. VIVA is the parent company of TVOne channel, while MNCN is the parent company of MNCTv channel. Both of the television channels are owned by two famous politicians Aburizal Bakrie and Hari Tanoe Sudibyio and both them are in the pro-party to the former president and vice president candidates Prabowo-Hatta. Pros and Cons of different quick count polls result between MNC Tv and TVOne compared to other TV channels were considered as the cause of the declining of both companies stock price. Based on the background, the research problems are: 1. Does Indonesia Presidential Election year 2014 affects the average of abnormal return on Advertising Printing Media Companies listed on Indonesia Stock Exchange before and after the Presidential Election. 2. Does Indonesia Presidential Election year 2014 affects the average of trading volume activities on Advertising Printing Media Companies listed on Indonesia Stock Exchange before and after the Presidential Election. The objectives of this research are to examine the impact of: 1. Indonesia Presidential Election year 2014 in the average of abnormal return on Advertising Printing Media Companies listed on Indonesia Stock Exchange before and after the Presidential Election. 2. Indonesia Presidential Election year 2014 in the average of trading volume activities on Advertising Printing Media Companies listed on Indonesia Stock Exchange before and after the Presidential Election.
101 Proceedings of The 5th Annuual International Conference Syiah Kuala University (AIC Unsyiah) 2015 In conjunction with The 8th International Conference of Chemical Engineering on Science and Applications (ChESA) 2015 September 9-11, 2015, Banda Aceh, Indonesia
This paper be organized in the following order: Abstract, Key words, Introduction, Literature Review, Research Method, Results and Discussion, Conclusions, and References
Literature Review 1. Abnormal Return According to Jogiyanto (2009:557), abnormal return is the excess of actual return on normal return. Normal return is expected return or return that is supposed by investors. Thus the abnormal return is the difference between the actual return and expected return. Abnormal return can occur due to certain events, such as national holidays, beginning of the month, beginning of the year, uncertain political condition, phenomenal events, stock split, initial shares public offering, etc (Tendellin, 1999). 2. Trading Volume Activities Trading volume is the number of shares that traded within one trading day. Based on the function, trading volume activities is a variation of the event study. Trading volume activities can be used to test the weakness form of efficiency hypothesis because the market are still not efficient in that form, the price does not change immediately to reflect the available information. For this reason, researcher only can observe the reaction of the capital market by trading volume movements (Sunur, 2006). The changes of trading volume activities in the stock market show a trading activity of the stock and reflect the investment decisions by investors. Trading volume activities are used to see whether individual investors assess the informative announcement or not. Therefore, the information can affect an investment decision. The results of trading volume activities reflect the ratio between the numbers of shares traded divided by the number of shares outstanding in a given period.
Research Method Data used in this research was a secondary data, which was obtained indirectly through an intermediary medium or obtained and noted by others. The data in this research are : a. Event day, which is the date of Presidential Election Year 2014, is 9th July 2014. b. The list of Advertising Printing Media Companies Listed on Indonesia Stock Exchange which is obtained from IDX official website. c. The stock price is the price at the time of daily closing price, it is used to calculate the actual return. d. Daily stock price changes of company-i started one day before the election event date (t- 1) and one day after the date of the election events (t + 1). e. Changes in the daily market price indicator are CSPI that used to determine the market return (Rmt). f. Daily trading volume of company-i started one day before the election event date (t-1) and one day after the date of the election events (t+1). g. The amount of outstanding shares of company-i started one day before the election event date (t-1) and one day after the date of the election events (t+1). The populations in this research were all companies that go public in Advertising Printing Media subsector listed on Indonesia Stock Exchange during the research period from July 8th 2014 to July 10th 2014, which were 14 companies. The operationalization of the variables to be used in research can be seen as follow: 1. Abnormal return is the difference between its actual return with expected return. The formulation is as follows (Jogiyanto, 2009): = -
Descriptions: , , , = Abnormal Return of i-securities
, on t-event period = Expected return of i-securities at all events of t-period
, = Actual Return of i-securities in t-estimation period ,
102 Proceedings of The 5th Annuual International Conference Syiah Kuala University (AIC Unsyiah) 2015 In conjunction with The 8th International Conference of Chemical Engineering on Science and Applications (ChESA) 2015 September 9-11, 2015, Banda Aceh, Indonesia a. The actual return is the return that occur in time-t which represents the difference between the relative current price and the price before (t-1)
R,i,t = , , Descriptions: , R,i, t = daily stock returns of i-securities in t-period Pi,t = Stock price for current time Pi,t-1 = Stock price for previous time b. Expected return is the return expectation that will be acquired by investors in the future. In this research, expected return was calculated by using Market Adjusted-Model. It is because this model estimates returns of securities equal to the return market index. Therefore, it is not necessary to use the estimation period. =
Descriptions: , , , = Expected return of i-securities at all events of Period-t
, = Market Return i-securities in the estimation period-t c. ,This, research used CSPI as market return. The formula to calculate market return is as follow (Jogiyanto, 2009) : = , , Decriptions : , , , = Market Return of i-securities in t-estimation period
CSPI, , i,t = CSPI in the t-period CSPIi,t-1 = CSPI in the t-1 period
2. TVA (Trading Volume Activities) is the number of shares traded within one trading day. TVA results reflect ratio among the number of shares traded divided by the number of shares outstanding in a given period. So, trading volume activities is measured using the following formula (Foster, 1986 in Husnan et al., 1996): = ∑ , ∑ Description: = Trading Volume Activities of i-securities traded at time-t
, The analysis was performed using the event study method to process and discuss the data obtained. The steps before analyzing the data in this study were as follows: 1. Identifying Presidential Election date, which was July 9, 2014. In order to simplify discussion, the Presidential Election date was identified as day zero (t = 0). 2. Specifying the event period of stock reaction measurements of Presidential Election date. Event period used was three days, which consisted of one day before the event, one day at the time of the events, and one day after the event. 3. Calculating the abnormal return during event period. 4. Calculating trading volume activities during event period. 5. Calculating the average of abnormal return during event period. 6. Calculating the average of trading volume activities during event period.
103 Proceedings of The 5th Annuual International Conference Syiah Kuala University (AIC Unsyiah) 2015 In conjunction with The 8th International Conference of Chemical Engineering on Science and Applications (ChESA) 2015 September 9-11, 2015, Banda Aceh, Indonesia
Event Period
t-1 t0 t+1 8th July 2014 9th July 2014 10th July 2014
Figure 1 Event Window
In this research, differential test (t-test) with associated sample (paired sample t-test) was used to prove the hypotheses. The purpose of t–test is to compare the average groups that were not related each other. Whether both of those groups had the same significant average value or not (Ghozali, 2011:64) . Before doing the t-test, we have to state the hypotheses as follows: H1 : Indonesia Presidential Election year 2014 affects the average of abnormal return on Advertising Printing Media Companies listed on Indonesia Stock Exchange before and after the Presidential Election. H2 : Indonesia Presidential Election year 2014 affects the average of trading volume activities on Advertising Printing Media companies listed on Indonesia Stock Exchange before and after the Presidential Election. For the decision-making, in this research performed the following considerations: 1. If the probability < 0.05; then the hypotheses is accepted, it means that there are differences in variances. 2. If the probability > 0.05; then the hypotheses is rejected, it means that there is no differences in variance.
Results and Discussion 1st Hypothesis Paired sample t-test of abnormal return for MNCN and VIVA shows t-value is 119,708 with significance (sig) 0,005. Because the signifance of 0,005 < 0,05, the interference taken is the abnormal return for MNCN and VIVA stocks has significant differences before and after the presidential election. But, paired sample t-test of the abnormal return for all companies on Advertising P rinting Media Subsector shows the t-value of -0,383 with significance (sig) 0,708. It means there was no significant difference of abnormal return before and after presidential election year 2014. Negative value (-) on t-value shows that the average abnormal return before the presidential election year 2014 lower than the average abnormal return after the presidential election.
The significant result of the abnormal return before and after the presidential election in MNCN and VIVA stocks shows the phenomenon that happened in both of these stocks about the declining of stocks price can be proven. The difference in the Quick Count result of election winner in MNCTV and TVOne lead the market has negative response to these stocks. In contrast with the result of Quick Count on other TV channels such SCTV that lead the stock price of SCMA increased one day after the presidential election. But, when the paired sample t-test was done on all stocks under Advertising Printing Media companies as many 14 companies, it shows there was no significant difference before and after the presidential election. It might happen due to the declining of stock prices did not happen in all stocks under this subsector. While the stock prices of VIVA and MNCN decreased, others stock prices such as MDIA, TMPO and LINK increased.
104 Proceedings of The 5th Annuual International Conference Syiah Kuala University (AIC Unsyiah) 2015 In conjunction with The 8th International Conference of Chemical Engineering on Science and Applications (ChESA) 2015 September 9-11, 2015, Banda Aceh, Indonesia
2nd Hypothesis Paired sample t-test of trading volume activites for MNCN and VIVA shows that t-value is - 1,294 with significance (sig) 0,005. Because the signifance value 0,005 > 0,05, the interference taken was trading volume activites for MNCN and VIVA stocks has no significant differences before and after the presidential election. Similarly with paired sample t-test of trading volume activites for all companies on Advertising Printing Media Subsector shows the t-value of -0,887 with significance (sig) 0,391. Because the significance of 0,391 > 0,05. In the other words there was no significant differences of trading volume activites before and after presidential election year 2014. Negative value (-) on t-value shows that the average trading volume activites before the presidential election year 2014 lower than the average abnormal return after the presidential election.
The absence of differences in average trading volume activities before and after the presidential election caused by the absence of the demand from investors. It means that investors assumed the presidential election year 2014 was not a big event that has am affect on the desire of investors to trade their stocks in market. Although there is no significant differences of trading volume activities before and after the presidential election, the daily trading volume of each stock has increased almost in all stocks under Advertising Printing Media.
Conclusions
Based on the discussion in the previous chapters, this research was aimed to examine the impact of Indonesia Presidential Election year 2014 on abnormal return and trading volume activities before and after the event. The conclusions are as follow: 1. Based on the statistical test of average abnormal return of stocks during the event period, it was found that there was no significant difference in the average abnormal return before and after the presidential election year 2014. It is due to the type of capital market of Indonesia that is semi-strong type of capital market. Therefore, the information or events that happened in Indonesia was not responded quickly by Indonesian investors. 2. Based on the statistical test of average trading volume of stocks during the event period, it was found that there was no significant difference in the average trading volume before and after the presidential election year 2014. The absence of significant differences in average trading volume activities before and after the presidential election because there was no demand from investors. It means that investors assumed the presidential election year 2014 was not a big event that affects their desire to trade their stocks in the market. Generally, the results of this research indicate that presidential election year 2014 did not affect the activities in Indonesia Stock Exchange if seen from the trading activities side. In other words, Indonesian capital market (in this case IDX) did not react to the presidential election which can be seen from the absence of differences in average abnormal return and average trading volume activities before and after the presidential election year 2014.
References
Alwi, Iskandar Z. 2003. Pasar Modal, Teori dan Aplikasi. Jakarta: Nasindo Internusa. Darmadji, Tjiptono and Hendry M. Fakhruddin, 2002. Pasar Modal di Indonesia: Pendekatan Tanya Jawab, Jakarta: Salemba Empat. Ghozali, Imam. 2011. Aplikasi Analisis Multivariate dengan Program IBM SPSS 19. 5th Ed. Semarang: Universitas Diponegoro. Homaifar, Ghazzem J. Zeitz and Omar Benkato. 1998. Determinants of Capital Structure for Multinational and Domestic Corporations. International Economics Vol. LI(2): 189-210. Husnan, Suad. 1996. Teori Portofolio dan Analisis Sekuritas. Yogyakarta: UPP AMP YKPN. Jogiyanto. 2009. Teori Portofolio dan Analisis Investasi. 6th Ed. Yogyakarta: BPFE.
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Kabela, Krisdumar and Taufik Hidayat. 2009. Pengaruh Peristiwa Pemilihan Umum Presiden dan Wakil Presiden 8 juli 2009 di Indonesia Terhadap Abnormal Return di Bursa Efek Indonesia. Prestasi Vol.5(2): 57-96. Lamasigi. 2002. Reaksi Pasar Modal Terhadap Peristiwa Pergatian Presiden Republik Indonesia 23 Juli 2001 : Kajian Terhadap Return Saham LQ-45 di PT. Bursa Efek Jakarta. Simposium Nasional. Akuntansi 5. Semarang, 5-6 September 2002. Munari. 2004. Reaksi Pasar Setelah Hasil Pemilu 2004 (Study Terpilihnya SBY sebagai Presiden RI Periode 2004-2009). Jurnal Riset Ekonomi dan Bisnis Vol. 7(2) September 2007: 58-69. Nurhaeni, Nunung, 2009, Dampak Pemilihan Umum Legislatif Indonesia Tahun 2009 Terhadap Abnormal Return dan Aktivitas Volume Perdagangan Saham di BEI (Uji Kasus pada Saham Yang Terdaftar Dalam Kelompok Perusahaan LQ 45). Thesis. Semarang: Universitas Diponegoro Sirait, Syafitri Rica, Wiwik Tiswiyanti and Fitrini Mansur. 2012. Dampak Pergantian Menteri Keuangan RI Tahun 2010 Terhadap Abnormal Return Perusahaan Perbankan yang Terdaftar di BEI. e-Jurnal BINAR AKUNTANSI Vol. 1(1):14-22. Sri K, Heru. 2014. Saham VIVA dan MNC Anjlok akibat "Quick Count" Menangkan Prabowo. Via
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SYIAH KUALA UNIVERSITY PRESS 2013 ISSN : 2089-208X The Impact of Indonesia Presidential Election Year 2014 on Abnormal Return and Trading Volume Activities of Stocks in Indonesia Stock Exchange (Event Study on Advertising Printing Media Stocks Listed by Rahmawaty Rahmawaty
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The Impact of Indonesia Presidential Election Year 2014 on Abnormal Return and Trading Volume Activities of Stocks in Indonesia Stock Exchange (Event Study on Advertising Printing Media Stocks Listed
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Mejda Bahlous. "Does Cross-Listing Benefit the 26 % Shareholders? Evidence from Companies in the <1 GCC Countries?", Asia-Pacific Financial Markets, 2013 Publication
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Salimah -, Yudhi Herliansyah. "The effect of 33 % capital expenditure, company growth and <1 company size on firm value through financial performance moderated by capital structure", Corporate Ownership and Control, 2019 Publication
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