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MARKET REACTION TO EARTHQUAKES

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Penulis : ROBETA DRAKEN NEDY (NIM 19007085)
Kontributor / Dosen Pembimbing :
  • Pembimbing: Prof. Dr. Ir. Sudarso Kaderi Wiryono
Jenis Koleksi : Tugas Akhir
Tahun Terbit :
Penerbit : Sekolah Bisnis dan Manajemen
Fakultas : Sekolah Bisnis dan Manajemen
Subjek :
Kata Kunci : earthquake impact, economy market
Sumber :
Staf Input/Edit : Vika Anastasya Kovariansi   Vika Anastasya Kovariansi
File : 7 file
Tanggal Input : 23 Jul 2012

The reaction of the people due to earthquake comes in many ways. But in this research, the reaction that is looking for is the market reaction to several industry sectors in several locations. The sectors that researched are from mining, property & real estate, and infrastructure, utility, & transportation sectors. Those are chosen because it is believed that those sectors have directly impacted by the earthquake. The locations that are chosen are West Java, North Sulawesi, and West Papua. Those locations are chosen because it represents business region, semi-business region, and remote region. Also those areas were impacted by devastating earthquake in 2009. The approach that used is event study methodology and used 7 days as event window and 50 day as estimation periods. The findings of this research are, For the average abnormal return, the information contained by the earthquake for West Java region proved statistically has significant difference between after and before the event day for each research sectors. This also proved that somehow the earthquake hold some information that supports the market to react. For others location, the statistical test proved statistically has insignificant difference between after and before the event day. For the average trading volume activity, the information contained by the earthquake in some sectors proved statistically has significant difference between after and before the event day. They are property & real estate sector at West Java and mining and property & real estate sector at West Papua. This also proved that somehow the earthquake hold some information that supports the market to react. The industry sectors that influence the most by the earthquake in order are mining sector, property & real estate sector, infrastructure, utility, & transportation sector. The information contained by the earthquake is not strong enough to influence the judgment of the market to react. There are also many other information that support each other and make the market to react.

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