The Impact of the 2024 Indonesian Presidential Election Quick Count on Stock Returns of Companies Affiliated to the Presidential Candidates

Abstract

Political events can have an impact on the business. This study analyses the reaction of the Indonesian capital market to the announcement of the quick count results of the presidential election on February 15, 2024. The analysis focuses on the stock of companies affiliated with the presidential candidates. This research uses an event study procedure to determine whether there is a market reaction around the announcement of the election quick count results. The test results show that there are abnormal returns in the period before and after the announcement of the quick count results. There is a significant difference in cumulative abnormal returns before and after the announcement of the election quick count results.