Impacts of South Korea’s Political Events in 2017 Towards KRX 100

Authors

  • Yusnita Octafilia Institut Bisnis dan Teknologi Pelita Indonesia
  • Angelina Rudyanto Institut Bisnis dan Teknologi Pelita Indonesia
  • Hendri . A Institut Bisnis dan Teknologi Pelita Indonesia
  • Sarli Rahman Institut Bisnis dan Teknologi Pelita Indonesia

DOI:

https://doi.org/10.37385/ijedr.v2i1.251

Keywords:

Abnormal Return, Event Study, Trading Volume Activity, Political Events, t-test

Abstract

The capital market is a means for investors to invest in the long term and diversify, spread ownership of the company, and even create a healthy business climate through information disclosure. Political phenomena and events that occur in a country greatly affect the sensitivity of the capital market and can affect investors' decisions in investing in the capital market, because the political situation of a country affects the country's economic conditions. This study was determined of abnormal return and trading volume activity of South Korea’s political events. It has a ten windows period, amounts of samples were 98 companies of KRX 100 by purposive sampling technique. Analysis techniques used one-sample t-test and paired difference test. The result showed there is an abnormal return, a significant negative abnormal return difference, and no significant trading volume activity before and after South Korea’s political events. It means South Korea’s market is said to be efficient in a strong form because it is not influenced by political information and news that occurred in 2017.

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Published

2021-06-30

How to Cite

Octafilia, Y., Rudyanto, A., . A, H., & Rahman, S. (2021). Impacts of South Korea’s Political Events in 2017 Towards KRX 100 . International Journal of Economics Development Research (IJEDR), 2(1), 293–305. https://doi.org/10.37385/ijedr.v2i1.251