Abstract

This research is event study and aims to know analyze whether or not there is a market reaction at the time of the 2019 general election and around the date of the event measured using abnormal return. The sample used is the company's incorporated in the LQ-45 index for the period February- July 2019. The period observation is used for 15 days, which is 7 days before and 7 days after the 2019 general election. The analysis technique used is the one sample t-test and test paired sample t-test. The results of the study show no market reaction during the election and there is no difference in the average abnormal return between before and after the 2019 general election.

Keywords: general election, abnormal return, event study