Stock Market Reaction to Government Stimulus Packages: Evidence from Indonesia, Malaysia, Philippines, Singapore, and Thailand

Buddi Wibowo

doi:10.4108/eai.27-7-2021.2316874

Stock Market Reaction to Government Stimulus Packages: Evidence from Indonesia, Malaysia, Philippines, Singapore, and Thailand

Buddi Wibowo

Department of Management

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

COVID-19 is an unprecedented event and had a negative effect on the stock market around the world. In order to lessen the effect, the government took action with economic stimulus packages. This study examines how the stock market responded to every stimulus package offered by the Government in Indonesia, Malaysia, Philippines, Singapore, and Thailand. The method used in this study is event study, we used 7-day cumulative abnormal return to measure the market’s response to the stimulus packages. Interestingly, The result shows that the market in Indonesia, Malaysia, Philippines, and Singapore in general reacted negatively while Thailand’s market reacted positively to the stimulus packages.

Original language	English
Title of host publication	4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021
Publisher	EAI
DOIs	https://doi.org/10.4108/eai.27-7-2021.2316874
Publication status	Published - Jun 2022

Keywords

COVID-19
Coronavirus
Stock Market
Government Stimulus Package
Event Study

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10.4108/eai.27-7-2021.2316874

Cite this

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title = "Stock Market Reaction to Government Stimulus Packages: Evidence from Indonesia, Malaysia, Philippines, Singapore, and Thailand",

abstract = "COVID-19 is an unprecedented event and had a negative effect on the stock market around the world. In order to lessen the effect, the government took action with economic stimulus packages. This study examines how the stock market responded to every stimulus package offered by the Government in Indonesia, Malaysia, Philippines, Singapore, and Thailand. The method used in this study is event study, we used 7-day cumulative abnormal return to measure the market{\textquoteright}s response to the stimulus packages. Interestingly, The result shows that the market in Indonesia, Malaysia, Philippines, and Singapore in general reacted negatively while Thailand{\textquoteright}s market reacted positively to the stimulus packages.",

keywords = "COVID-19, Coronavirus, Stock Market, Government Stimulus Package, Event Study",

author = "Buddi Wibowo",

year = "2022",

month = jun,

doi = "10.4108/eai.27-7-2021.2316874",

language = "English",

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T1 - Stock Market Reaction to Government Stimulus Packages: Evidence from Indonesia, Malaysia, Philippines, Singapore, and Thailand

AU - Wibowo, Buddi

PY - 2022/6

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N2 - COVID-19 is an unprecedented event and had a negative effect on the stock market around the world. In order to lessen the effect, the government took action with economic stimulus packages. This study examines how the stock market responded to every stimulus package offered by the Government in Indonesia, Malaysia, Philippines, Singapore, and Thailand. The method used in this study is event study, we used 7-day cumulative abnormal return to measure the market’s response to the stimulus packages. Interestingly, The result shows that the market in Indonesia, Malaysia, Philippines, and Singapore in general reacted negatively while Thailand’s market reacted positively to the stimulus packages.

AB - COVID-19 is an unprecedented event and had a negative effect on the stock market around the world. In order to lessen the effect, the government took action with economic stimulus packages. This study examines how the stock market responded to every stimulus package offered by the Government in Indonesia, Malaysia, Philippines, Singapore, and Thailand. The method used in this study is event study, we used 7-day cumulative abnormal return to measure the market’s response to the stimulus packages. Interestingly, The result shows that the market in Indonesia, Malaysia, Philippines, and Singapore in general reacted negatively while Thailand’s market reacted positively to the stimulus packages.

KW - COVID-19

KW - Coronavirus

KW - Stock Market

KW - Government Stimulus Package

KW - Event Study

UR - https://eudl.eu/doi/10.4108/eai.27-7-2021.2316874

U2 - 10.4108/eai.27-7-2021.2316874

DO - 10.4108/eai.27-7-2021.2316874

M3 - Conference contribution

BT - 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021

PB - EAI

ER -

Stock Market Reaction to Government Stimulus Packages: Evidence from Indonesia, Malaysia, Philippines, Singapore, and Thailand

Abstract

Keywords

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