Overview

Original Research

ANALYSIS OF THE CHINESE NEW YEAR EFFECT ON THE INDONESIAN CAPITAL MARKET

EDON RAMDANI 1, NUGRAHA 2, DISMAN 3, and MAYA SARI 4.

Vol 17, No 07 ( 2022 )   |  DOI: 10.5281/zenodo.6891817   |   Author Affiliation: Indonesian Education University 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 655-663   |   To cite: EDON RAMDANI, et al., (2022). ANALYSIS OF THE CHINESE NEW YEAR EFFECT ON THE INDONESIAN CAPITAL MARKET. 17(07), 655–663. https://doi.org/10.5281/zenodo.6891817   |   Published on: 19-07-2022

Abstract

This study aims to determine whether there is an effect of the Chinese New Year on the return and volume of stock trading on the Indonesian stock exchange or not. Different test analysis using non-parametric test, t-test has been carried out. Higher average index returns were observed at '1 to 5 days before Chinese New Year' and '6 to 10 days after Chinese New Year holiday', while for average stock trading volume 5 days after Chinese New Year was higher. The results of the Wilcoxon Signed Ranks Test show that there is no significant effect of stock returns and trading volume before and after the Chinese New Year. The impact of the Chinese New Year on stock returns and trading volume on the Indonesia Stock Exchange is not proven in this study. The capital market of a country is influenced by the domination of the nation (ethnicity) in that country.

Keywords

Analysis, Stock, Chinese New Year, Indonesian Capital Market