EFFECT OF 2008 AND 2016 U.S. PRESIDENTIAL ELECTION IN THE INDONESIAN STOCK MARKET

Abstract

The U.S. Presidential election was an event that received widespread attention across the globe. In the 2008 presidential campaign, Barrack Obama nominated to be the first black President. In 2016, Hillary Clinton poten­tially becomes the first woman President in American history, while the other can­di­da­te, Donald Trump, ma­de some unpopular and controversial proposals. The purpose of this paper is to ana­­­lyse whether the 2008 and 2016 election were considered as the rele­vant information in the Indonesian Stock Market (IDX). The daily closing prices of all all share listed in IDX wo­uld be examined used event stu­­­dy method. The results provide insight about the res­pon­si­­­veness of IDX parti­ci­pants to the U.S. Pre­si­den­­tial election event that could be used in decision making.