Abstract
This research examined national elections’ impact on crash risks of individual stocks listed in the Indonesia Stock Exchange. The study used national elections as a proxy for political uncertainty and negative skewness of stock returns as a proxy for crash risk. The study sample included all non-financial firms listed in the Indonesia Stock Exchange from 2002 to 2016. Findings showed that both national elections and post-national election periods tended to increase individual stock’s risk of crashing. On the industry level, researchers found nuances in which national elections’ impact varies according to industry, with some industries tending to greater risk of crash than others during national elections and post-national election periods.
Original language | English |
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Title of host publication | Challenges of the Global Economy |
Subtitle of host publication | Some Indonesian Issues |
Publisher | Nova Science Publishers, Inc. |
Pages | 321-331 |
Number of pages | 11 |
ISBN (Electronic) | 9781536165357 |
ISBN (Print) | 9781536162769 |
Publication status | Published - 1 Jan 2019 |
Keywords
- Crash risk
- National election
- Political uncertainty
- Stock market