The Influence of Indonesian Investor Sentiment on Stock Returns Before and After the Issue of the Russian-Ukrainian War in Energy Sector Companies Listed on the IDX

DOI

10.2991/978-94-6463-443-3_3How to use a DOI?

Keywords

Consumer Confidence; Mutual Fund Flows; Investor Sentiment; Stock Return; Trading Volume

Abstract

The Russo-Ukrainian War and its subsequent geopolitical ramifications have wielded a substantial influence on market dynamics and industrial energy sectors in various countries, including Indonesia. This article delves into the intricacies of Indonesian investor sentiment and its correlation with stock returns within the energy sector, both pre and post the Russia-Ukraine war. The overarching objective of this study is to unravel the nuanced shifts in investor sentiment in the backdrop of this geopolitical strife and comprehend how these shifts reverberate throughout Indonesia’s energy sector. Several factors that are known to sway investor sentiment are scrutinized in this article. These encompass the volume of keyword searches on Google Trend, trading volume, consumer confidence indices, and mutual fund flows. The research findings unearth a negative impact of the volume of keyword searches linked to the Russia-Ukraine conflict on the stock returns of energy sector companies. Furthermore, trading volume is revealed to exert a positive influence on stock returns, while consumer confidence indices and mutual fund flows exhibit a favorable effect on the stock returns of energy sector companies. Against the backdrop of the Russian-Ukrainian war, investor sentiment emerges as a pivotal factor with the potential to significantly shape the stock prices and returns of companies operating in the energy sector. This study serves as a valuable resource for understanding the pivotal role of investor sentiment during geopolitical conflicts and its ripple effects on market dynamics within the energy sector. The insights garnered from this research can furnish both companies and investors with a foundational framework for making informed investment decisions and mitigating risks during periods of political and economic uncertainty.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Hadi Ahmad Sukardi
AU  - Nugraha Nugraha
AU  - Imas Purnamasari
AU  - Maya Sari
AU  - Yayat Supriatna
PY  - 2024
DA  - 2024/06/26
TI  - The Influence of Indonesian Investor Sentiment on Stock Returns Before and After the Issue of the Russian-Ukrainian War in Energy Sector Companies Listed on the IDX
BT  - Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)
PB  - Atlantis Press
SP  - 14
EP  - 23
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-443-3_3
DO  - 10.2991/978-94-6463-443-3_3
ID  - Sukardi2024
ER  -