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

Authors

  • Latifah Hanum Purnasari Bogor Agricultural University, Indonesia
  • Hermanto Siregar
  • Tb Nur Ahmad Maulana

Keywords:

Event study, Abnormal return, Trading volume, Mining, IDX

Abstract

Implementation 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 and  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.

Author Biography

Latifah Hanum Purnasari, Bogor Agricultural University, Indonesia

Management Business, Bogor Agricultural University

References

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Published

2015-12-14

How to Cite

Purnasari, L. H., Siregar, H., & Maulana, T. N. A. (2015). 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. Asian Journal of Business and Management, 3(6). Retrieved from https://ajouronline.com/index.php/AJBM/article/view/3304

Issue

Vol. 3 No. 6 (2015): December 2015

Section

Articles

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