Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?

This study aimed to analyze the existence and effect of the Covid-19 pandemic on the stock market over the long-term and short-term in Indonesia. The study followed Krugman’s (1979) approach stating the pandemic crisis problems have the potential to decrease the performance of the international bala...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Dwi Rahmayani, Shanty Oktavilia
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Gadjah Mada 2021
Materias:	covid-19 error correction model interest rate pandemic stock market Political science (General) JA1-92 Social sciences (General) H1-99
Acceso en línea:	https://doaj.org/article/106d471dd4cc48f98ca299e763dece04
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:106d471dd4cc48f98ca299e763dece04
record_format	dspace
spelling	oai:doaj.org-article:106d471dd4cc48f98ca299e763dece042021-12-02T17:20:44ZDoes the Covid-19 Pandemic Affect the Stock Market in Indonesia?1410-49462502-788310.22146/jsp.56432https://doaj.org/article/106d471dd4cc48f98ca299e763dece042021-01-01T00:00:00Zhttps://jurnal.ugm.ac.id/jsp/article/view/56432https://doaj.org/toc/1410-4946https://doaj.org/toc/2502-7883This study aimed to analyze the existence and effect of the Covid-19 pandemic on the stock market over the long-term and short-term in Indonesia. The study followed Krugman’s (1979) approach stating the pandemic crisis problems have the potential to decrease the performance of the international balance of payments which will ultimately lead to uncertainty in the market. The research method was the Error Correction Model (ECM) with stock markets as an endogenous variable; and exchange rate, inflation, interest rate, foreign stock markets, commodity price, and pandemic as exogenous variables. The pandemic indicator was measured by total accumulative cases of Covid-19 per day in Indonesia. Using ECM, the result showed that foreign interest rates and commodity prices positively affect the stock markets. Conversely, the exchange rate has a negative effect on the stock markets. However, the estimation fails to reflect the significant impact of the Covid-19 pandemic in the short-term, but it has a negative effect on stock markets in the long-term. This result implies that the higher total accumulative cases of Covid-19 has been the source of Indonesia’s stock market weakness in the long-term. To the best of the author’s knowledge, this study is the first to examine Indonesia’s stock market’s pandemic impact between the short term and long term.Dwi RahmayaniShanty OktaviliaUniversitas Gadjah Madaarticlecovid-19error correction modelinterest ratepandemicstock marketPolitical science (General)JA1-92Social sciences (General)H1-99ENJSP: Jurnal Ilmu Sosial dan Ilmu Politik, Vol 24, Iss 1, Pp 33-47 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	covid-19 error correction model interest rate pandemic stock market Political science (General) JA1-92 Social sciences (General) H1-99
spellingShingle	covid-19 error correction model interest rate pandemic stock market Political science (General) JA1-92 Social sciences (General) H1-99 Dwi Rahmayani Shanty Oktavilia Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?
description	This study aimed to analyze the existence and effect of the Covid-19 pandemic on the stock market over the long-term and short-term in Indonesia. The study followed Krugman’s (1979) approach stating the pandemic crisis problems have the potential to decrease the performance of the international balance of payments which will ultimately lead to uncertainty in the market. The research method was the Error Correction Model (ECM) with stock markets as an endogenous variable; and exchange rate, inflation, interest rate, foreign stock markets, commodity price, and pandemic as exogenous variables. The pandemic indicator was measured by total accumulative cases of Covid-19 per day in Indonesia. Using ECM, the result showed that foreign interest rates and commodity prices positively affect the stock markets. Conversely, the exchange rate has a negative effect on the stock markets. However, the estimation fails to reflect the significant impact of the Covid-19 pandemic in the short-term, but it has a negative effect on stock markets in the long-term. This result implies that the higher total accumulative cases of Covid-19 has been the source of Indonesia’s stock market weakness in the long-term. To the best of the author’s knowledge, this study is the first to examine Indonesia’s stock market’s pandemic impact between the short term and long term.
format	article
author	Dwi Rahmayani Shanty Oktavilia
author_facet	Dwi Rahmayani Shanty Oktavilia
author_sort	Dwi Rahmayani
title	Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?
title_short	Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?
title_full	Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?
title_fullStr	Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?
title_full_unstemmed	Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?
title_sort	does the covid-19 pandemic affect the stock market in indonesia?
publisher	Universitas Gadjah Mada
publishDate	2021
url	https://doaj.org/article/106d471dd4cc48f98ca299e763dece04
work_keys_str_mv	AT dwirahmayani doesthecovid19pandemicaffectthestockmarketinindonesia AT shantyoktavilia doesthecovid19pandemicaffectthestockmarketinindonesia
_version_	1718381010161238016

Does the Covid-19 Pandemic Affect the Stock Market in Indonesia?

Ejemplares similares