Record Details

Stock Market Reaction to the Tax Amnesty Announcement

Indonesian Capital Market Review

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Title Stock Market Reaction to the Tax Amnesty Announcement
 
Creator Muhammad Satriyo Wibowo; Universitas Airlangga
Puji Sucia Sukmaningrum; Universitas Airlangga
 
Subject tax amnesty; market reaction; Average Abnormal Return; AAR; Trading Volume Activity; TVA; event study; Islamic stock
 
Description The Indonesian Government has put in place policies that are quite bold and that highly impacton both companies and the economy. This includes the endorsement tax amnesty policy in 2016.This study aims to investigate the reaction of the stock market against the policy. The dataset of this research was 100 companies listed on the Indonesian Islamic Stock Index (ISSI). Research methods used the event study market adjusted model to look at changes in the Average Abnormal Return (AAR) and Trading Volume Activity (TVA) during the announcement. The results of this research show there is a difference in the AAR and TVA before and after the announcement. The investors positively viewed the information content of the tax amnesty policy. The government has made a very good policy and it supports the improvement in the quality of corporate governance and company performance.
 
Publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
 
Contributor —
 
Date 2020-05-17
 
Type —
 
Format application/pdf
 
Identifier http://journal.ui.ac.id/index.php/icmr/article/view/11608
 
Source Indonesian Capital Market Review; Vol 11, No 2 (2019): July 2019 (in press)
 
Language en