We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Cash Reserve, CEO Health Risk, The Price Reaction Due to COVID-19 First Announcement on Leisure Industry.
- Authors
Arsyad, Muhammad Afif; Utama, Cynthia Afriani
- Abstract
This study investigates stock market reaction in leisure industries to the first Government announcement of the COVID-19 outbreak in Indonesia on March 2, 2020. This study used event study methodology and was supported by multiple linear regression to analyze the relationship between market reaction and independent variables. The analysis was further modeled using Fama French three-factor models to estimate the expected return on firms due to the first COVID-19 outbreak announcement. Based on our calculation of Cumulative abnormal returns, the stock of tourism industries has more negative reaction towards a confirmed first case of COVID-19 compared to other industries. We also find that Indonesian firms with greater cash reserves experienced less negative stock returns while firms with higher leverage ratios were penalized more. Additionally, this paper does not find that firms with Chief Executive Officers (CEO) who were exposed to significant health risks from COVID-19 experienced worse stock market performances.
- Subjects
INDONESIA; LEISURE industry; FINANCIAL market reaction; COVID-19; PRICES; COVID-19 pandemic; ABNORMAL returns
- Publication
JDM: Jurnal Dinamika Manajemen, 2022, Vol 13, Issue 2, p253
- ISSN
2086-0668
- Publication type
Article
- DOI
10.15294/jdm.v13i2.36706