Abstract
The coronavirus pandemic has spread all over the world, affecting both the health and economic sectors. The aim of this research was to observe stock prices of customer goods before and after the COVID-19 pandemic using event study and the comparison test. The sample included data of daily closing stock prices and volume of stock trade during the three months before (−90 days) and after (+90 days) the occurrence of the COVID-19 pandemic ongoing, totaling 2670 observation data both before and after the COVID-19 pandemic, for a total of 5340. The research findings indicate a significant difference between the daily closing stock price and volume of stock trade before and after the COVID-19 pandemic. The current research has both theoretical and practical implications: the findings strengthen the efficient market hypothesis, which states that the more complete the provided information, the more efficient the market. The practical implication is that investors should be careful when choosing to invest. Investors should choose customer goods sector companies that provide products that are much needed by customers, for example, pharmacy, food, beverages, etc. Future research is needed to investigate the long-term impact of the pandemic on the economy.
Highlights
More than 200 countries are suffering from the COVID-19 pandemic, affecting both the health and economic sectors in the world economy
The composite stock price index of the Indonesia stock market weakened in line with the worry in the market about the effect of the COVID-19 pandemic on the global economy
Yilmazkuday [8] proposed that having a global COVID-19 death rate more than 1% would cause about a 0.02% cumulative reduction in the Standard & Poor’s 500 after one day, about 0.06% after one week, and about 0.08% of a reduction after a month
Summary
More than 200 countries are suffering from the COVID-19 pandemic, affecting both the health and economic sectors in the world economy. The Dow Jones and Standard & Poor’s showed that the share values of corporations in the U.S dropped by 20% since mid-March 2020. Similar to the Nikkei (Tokyo Stock Exchange), prices of companies’ shares fell significantly. Exchange) has experienced a 9% decline in its share prices of the index over the previous week and was forced to close trading three times during this week since mid-March 2020. The composite stock price index of the Indonesia stock market weakened in line with the worry in the market about the effect of the COVID-19 pandemic on the global economy. On the morning of 8 April 2020, the composite stock
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