Analisis Penurunan Nilai Saham pada Perusahaan yang Terkena Boikot Produk yang Terdaftar di Bursa Efek Indonesia (BEI)

Abstract

One of the phenomena affecting the economy and politics in Indonesia is the conflict between Palestine and Israel. This issue has triggered strong reactions in various parts of the world, manifested in the form of boycotts against products affiliated with Israel. As a predominantly Muslim country, Indonesia also supports the boycott movement. The companies involved in the controversy experienced significant stock trades, indicating that investors are sensitive to social and political issues. This study examines the impact of the product boycott movement related to the Israel-Palestine conflict on the company's stock performance on the IDX, aiming to determine whether there are significant changes in stock prices, abnormal returns, trading volume activity, and volatility returns before and after the boycott movement. This study employs a quantitative approach, focusing on 8 companies affiliated with Israel. Data collection was carried out using secondary data sourced from the Indonesia Stock Exchange (IDX) and Yahoo Finance. This research was analyzed using the event study method to measure the impact of the boycott movement on stock prices, abnormal returns, and trading volume activity of companies on the IDX, and Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) to analyze the volatility of stock returns in the 240 day period before and after the boycott movement. The results of this study indicate that the product boycott movement against companies listed on the IDX does not have a significant impact on stock prices and abnormal returns, but has a significant impact on trading volume activity, as well as causing increased volatility in some stocks such as ADES, which indicates an investor reaction to social issues even though it does not fully affect the value of shares. So it is recommended that investors pay attention to socio-political factors in making investment decisions and regulators are more responsive to market dynamics due to public sentiment.