Capital Market Reaction to The Announcement of Demonstration Action Rejection of The Job Creation Bill: Case Study Of LQ-45 Index Companies Listed on Indonesia Stock Exchange
Political events can be a factor that is considered to influence market reactions on the stock exchange, because political events are closely related to the stability of a country's economy. One of them is the announcement of a demonstration against the Job Creation Bill, which is a type of published information or event. The purpose of this study was to determine whether there were differences in abnormal returns and trading volume activity before and after the announcement of the demonstration against the Job Creation Bill. The study population was 45 companies listed on the Indonesia Stock Exchange (BEI) in the LQ45 index for the period August 2020 - January 2021 by purposive sampling. The results showed that there was no difference in abnormal returns on the LQ-45 stock index before and after the announcement of the demonstration against the Job Creation Bill. The results are the same as the trading volume activity, which shows that there is no difference in trading volume activity before and after the announcement of the demonstration against the Job Creation Bill.