The Short-Term Effect of the Announcement of Covid-19 Pandemic in Indonesia on the Consumer Goods Industry

DOI

10.2991/aebmr.k.220501.042How to use a DOI?

Keywords

Stock retuns; Consumer Goods; Covid-19

Abstract

President Joko Widodo’s announcement of the introduction of COVID-19 to Indonesia on March 2, 2020 has created panic buying by people at convenience stores. Panic buying by the public can be information for investors to determine stock prices and the level of stock return in the capital market. This research is an event study of the stock returns of the consumer goods industry in the event window for the announcement of the COVID-19 epidemic by the President. The timelines used are (t-1, t+1) and (t-2, t+5). From the results of statistical tests using SPSS V.24, it shows that the stock returns of the consumer goods industry on both timelines have no effect, which means that events did not affect the stock return of the consumer goods industry, although those companies looked at have a stable profit level during the COVID-19 epidemic (later becoming a pandemic). With these results, the implications for traders in the capital market, every event does not necessarily affect the level of stock returns, other factors must be considered, while for investors who buy shares for the long term still have to consider the company’s fundamentals.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Hendro Lukman
PY  - 2022
DA  - 2022/05/11
TI  - The Short-Term Effect of the Announcement of Covid-19 Pandemic in Indonesia on the Consumer Goods Industry
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 278
EP  - 283
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.042
DO  - 10.2991/aebmr.k.220501.042
ID  - Lukman2022
ER  -