Analysis Of Differences In Abnormal Return And Trading Volume Activity Of Company Stocks Before And After The 2024 Presidential Election

This study aims to analyze the differences in average Abnormal Return and Trading Volume Activity (TVA) of stocks included in the LQ45 index before and after the 2024 Indonesian Presidential Election. An event study method was applied with a 21-day event window, consisting of 10 days before and 10 days after the election. The sample comprised 45 companies listed in the LQ45 index for the February–July 2024 period, selected using purposive sampling. Hypothesis testing was conducted using a paired sample t-test. The results indicate that there is no significant difference in the average Abnormal Return before and after the election (p = 0.684 > 0.05), while there is a significant increase in Trading Volume Activity (p = 0.029 < 0.05). These findings suggest that although stock prices remained relatively stable, trading activity intensified following the election, reflecting investor optimism toward the newly elected government. The novelty of this research lies in providing empirical evidence from the Indonesian capital market on how major political events influence investor behavior, with a comprehensive focus on LQ45 companies. Practically, the study contributes by highlighting that investors should closely monitor trading activity as an indicator of market sentiment, while policymakers can use these insights to promote market stability and sustain investor confidence during political transitions.