Abstract

This research aims to examine the impacts of Indonesia’s 2014 presidential election towards stock prices on Indonesia Stock Exchange. Samples used were the companies included in LQ-45 from February 2014 to July 2014.

This research took abnormal stock return and trading volume activity to be examined. Event study was used as the research model.

The result shows that there is abnormal return for each event during presidential election. However, there is no significant difference before and after the event for both abnormal return and trading volume activity.

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