National elections’ impact on crash risk for stocks listed in the Indonesia stock exchange, 2002-2016

Kenny Brian Wijaya, Wardatul Adawiyah

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

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 languageEnglish
Title of host publicationChallenges of the Global Economy
Subtitle of host publicationSome Indonesian Issues
PublisherNova Science Publishers, Inc.
Pages321-331
Number of pages11
ISBN (Electronic)9781536165357
ISBN (Print)9781536162769
Publication statusPublished - 1 Jan 2019

Keywords

  • Crash risk
  • National election
  • Political uncertainty
  • Stock market

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