International Journal of Economics Development Research (IJEDR)
Vol. 2 No. 1 (2021): International Journal of Economics Development Research

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

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)



Article Info

Publish Date
30 Jan 2021

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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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...