Stock Market Reaction to the Event of Indonesia’s General Election Events in 2019

ABSTRACT : An event must have information that can affect the stock market. One of the events allegedly having information for the capital market is the election which is part of political events. This study aims to look at the stock market reaction to information in the events of the Indonesian elections in 2019 by looking at the presence or absence of abnormal returns. This study uses the event study method with a sample of 44 companies listed on the
LQ45 index on the Indonesia Stock Exchange. The results of this study found a significant abnormal return on elections and election announcements, this indicates that the election events contain important information that
causes the stock market to react.
KEYWORDS : Event Studies, Market Reaction, Abnormal Return, Stock Market, Election