Journals Information

Universal Journal of Accounting and Finance Vol. 9(2), pp. 226 - 231
DOI: 10.13189/ujaf.2021.090212
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Impact of COVID-19 News on Performance of Indonesia Stock Market


A. Mulyo Haryanto 1,2,*, Wisnu Mawardi 2
1 Faculty of Economics and Business, Diponegoro University, Indonesia
2 Department of Management, Diponegoro University, Indonesia

ABSTRACT

This research tries to show that information about COVID-19 affects market arousal indicated by the frequency of transactions, and the market performance shown by Jakarta Composite Index (JCI). The theory used for analysis is the prospect theory and efficient market hypothesis (EMH). The results of statistical analysis indicate that information about COVID has a negative effect on JCI, as well as trading volume the previous day. The evidence can briefly prove that there is an effect of COVID-19 and weakening daily transactions on JCI. The research findings show that the JCI market uncertainty is in line with the VUCA and Prospect theory. In this case, it occurs that uncertainty affects the behavior of investors' decision making. Investors' decision-making behavior is accumulated in market behavior, and is subsequently manifested in index changes in accordance with the efficient market hypothesis. The contribution of this research to the study of financial market behavior is that uncertainty and uncertainty faced by investors affect market behavior and changes as measured by the index.

KEYWORDS
COVID-19, Prospect Theory, Rumors, Market Sentiment and Stock Market Performance

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] A. Mulyo Haryanto , Wisnu Mawardi , "Impact of COVID-19 News on Performance of Indonesia Stock Market," Universal Journal of Accounting and Finance, Vol. 9, No. 2, pp. 226 - 231, 2021. DOI: 10.13189/ujaf.2021.090212.

(b). APA Format:
A. Mulyo Haryanto , Wisnu Mawardi (2021). Impact of COVID-19 News on Performance of Indonesia Stock Market. Universal Journal of Accounting and Finance, 9(2), 226 - 231. DOI: 10.13189/ujaf.2021.090212.