Impacts of Indonesia Raw Minerals Export Ban on Abnormal Return and Trading Volume: An Event Study on Stocks of Metals and Minerals Mining Subsector in IDX
Keywords:Event study, Abnormal return, Trading volume, Mining, IDX
AbstractImplementation of the Indonesia raw minerals export ban and the obligation to build a smelter in Indonesia which applied by the Indonesian government through the Government Regulation No 1 Year 2014 allegedly had an impact on stock returns and trading volumes, especially stocks of metals andÂ minerals mining subsector in Indonesia Stock Exchange (IDX). This study uses an event study to analyse if there are significant differences in the abnormal return and trading volume at the time of Government Regulation No 1 Year 2014 officially enforced and in the event of smelter investment project announcement by the issuers. The results showed that there are significant differences on abnormal return when Indonesia raw minerals export ban officially enforced, but the volume of trade does not significantly different. The same results also occurred in the event of smelter investment project announcement by the issuers.
Amenc N, Le Sourd V, Portfolio Theory and Performance Analysis, John Wiley & Sons Ltd, UK, 2003
Brown KC, Reilly FK, Analysis of Investments and Management of Portofolios. Ninth Edition, South Western, Canada, 2009
Imelda, Siregar H, Anggraeni L, â€œAbnormal Returns and Trading Volume in the Indonesian Stock Market in Relation to the Presidential Elections in 2004, 2009, and 2014â€. International Journal of Administrative Science & Organization. vol. 21, no. 2, pp. 65-76, 2014.
Nagm F, Kautz K, â€œThe Market Value Impact of IT Investment Announcements - An Event studyâ€. Journal of Information Technology Theory and Application,vol. 9, no. 3, pp. 61-79. 1997.
Prevoo T, Weel BT, â€œThe Effects of a Change in Market Abuse Regulation on Abnormal Returns and Volumes: Evidence from the Amsterdam Stock Marketâ€, De Economist Journal, vol. 158, no. 3, pp.237-293, 2010.
Setiawan D, Hananto ST, Phua LK. â€œAn Analysis Of Market Reaction To Chief Executive Turnover Announcement In Indonesia: A Trading Volume Approachâ€, Journal of Business & Economics Research, vol. 9, no. 11, pp. 63-72, 2011.
Sharma A, â€œImpact of Public Announcement of Open Offer on Shareholders Return: An Empirical Test for Efficient Market Hypothesisâ€. The IUP Journal of Applied Finance, vol. 15, no. 11, pp. 37-51, 2009.
How to Cite
- Papers must be submitted on the understanding that they have not been published elsewhere (except in the form of an abstract or as part of a published lecture, review, or thesis) and are not currently under consideration by another journal published by any other publisher.
- It is also the authors responsibility to ensure that the articles emanating from a particular source are submitted with the necessary approval.
- The authors warrant that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required.
- The authors ensure that all the references carefully and they are accurate in the text as well as in the list of references (and vice versa).
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under aÂ Creative Commons Attribution License 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 (SeeÂ The Effect of Open Access).
- The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.