The Impact of the 2019 Indonesian Presidential Election and Inauguration on the Return of the Jakarta Islamic Index (JII)

Abstract

The purpose of present study is to determine the impact of
political events, namely, Election Inauguration for President
and Vice President of Republic of Indonesia in 2019 on
Abnormal Returns on the Jakarta Islamic Index (JII) Shares.
This exploration employs the event study analysis method. The
time-period used was 230 bourse days from November 7, 2018
to October 30, 2019, including 7 days before and 7 days after
the election‘s inauguration for the President and Vice President
of Indonesia in 2019. From two political events, there is an
abnormal return that decreases after the event compared to
before event occurred, but the decrease is statistically no
significant difference.