THE EFFECTS OF BOMB BLAST IN SURABAYA ON MAY 13 2018 IN LQ 45 INDEX SHARES AND IT'S IMPACT ON INVESTOR

Vincentia Wahju Widajatun

Vincentia Wahju Widajatun Universitas Widyatama, Bandung

Keywords: Terrorist attack, abnormal return, Event study

Abstract

This study aims to determine the influence differences of bombing event in Surabaya in LQ45 stock returns and to determine the sentiment of investor against bombing event in

Surabaya. The population of this research is companies listed on the Indonesia Stock Exchange and the sample in this study is 2018 LQ45 shares. Using the event study method to

analyst bombing event in Surabaya. The results of this study indicate a difference in abnormal returns before the bombing in Surabaya and after the bombing in Surabaya. And it

shows a decline in positive sentiment and become pessimistic feeling of investors towards the Surabaya Bombing, which determines the formation of prices on the stock market.