Election Uncertainty, Economic Policy Uncertainty: An Event Study Approach
DOI:
https://doi.org/10.59141/jrssem.v2i08.414Keywords:
Election Uncertainty; Economic Policy Uncertainty; Study Approach.Abstract
This study aims to analyze the impact of election uncertainty and economic policy uncertainty on stock market performance in Indonesia using an event study approach. Data obtained from the Indonesia Stock Exchange and the Central Bureau of Statistics during the 2010-2021 period. This study uses the OLS regression model and event study analysis to measure the impact of stock market performance on significant events related to election uncertainty and economic policies. The research results show that the uncertainty of the election and economic policies significantly affect the performance of the stock market in Indonesia. The impact is visible in the period before, during and after the significant events related to the uncertainty. In addition, the results of the analysis also show that elections and more stable economic policies tend to have a positive impact on stock market performance. In conclusion, this study shows that election uncertainty and economic policies have a significant impact on stock market performance in Indonesia. Therefore, it is important for investors to pay attention to political and economic conditions in making their investment decisions.
Published
2023-03-27
How to Cite
Utamaningsih, A. (2023). Election Uncertainty, Economic Policy Uncertainty: An Event Study Approach. Journal Research of Social Science, Economics, and Management, 2(8), 1868 –. https://doi.org/10.59141/jrssem.v2i08.414
Issue
Section
Articles
License
Copyright (c) 2023 Arni Utamaningsih
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
