Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Influence of Government Information and Response Related to COVID-19 in Indonesia Stock Market

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
The Influence of Government Information and Response Related to COVID-19 in Indonesia Stock Market

COVID-19; GSVI; Return; Volatility; Government; Policy

COVID-19 is a global health pandemic that is currently sweeping the world and had huge impact on the world economy. Currently, all countries, including Indonesia, are paying attention to how the development of this pandemic is, as evidenced by the many media that inform the development of the pandemic and the response given by the government in overcoming it. This study was conducted with the aim of investigating how the
influence provided by government information and policies related to COVID-19 on returns and stock volatility in Indonesia. Empirical findings from this study show that information on the COVID-19 pandemic (GSVI Covid), the number of positive cases, death rates, and the government tightening index during the pandemic, seem to have a negative effect on stock returns and vice versa have a positive effect on volatility. Meanwhile, with the information on the COVID-19 vaccine (GSVI Vaksin), fiscal policy in the form of growth in government spending, as well as monetary policy in the form of growth in the money supply is said to have a positive influence on stock returns, as well
as reduce excessive volatility in the market.

Agus Diemas Prayoga, Sung Suk Kim

DOI: 10.26905/jkdp.v26i4.8173

Universitas Merdeka Malang

October 2022

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

PDF

English

Text

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang