Event Study on the Crash of Airasia Plane: A Study on Travel and Leisure Companies Listed at Malaysian Stock Market

Authors

  • Tatang Ary Gumanti Ary Gumanti Faculty of Economics and Business Universitas Jember, Jln. Kalimantan 37, Jember 68121
  • Enni Savitri Faculty of Economics Universitas Riau, Pekanbaru
  • Nurul Wahidatun Nisa Faculty of Economics and Business Universitas Jember, Jln. Kalimantan 37, Jember 68121
  • Elok Sri Utami Faculty of Economics and Business Universitas Jember, Jln. Kalimantan 37, Jember 68121

DOI:

https://doi.org/10.9744/jak.20.1.20-26

Keywords:

Abnormal return, event study, AirAsia plane crash.

Abstract

This study analyzes the Malaysian stock market reaction in the event of the crash of AirAsia plane on 28 December 2014. The analysis is focused on the travel and leisure industry as the crash would affect more on this type of industry. A total of 15 companies met the selection criteria. The study uses the event study standard procedures in testing the proposed hypotheses. Results show that abnormal returns after the crash tend to decrease, yet no significant abnormal returns were found in the period before and after the event. Median abnormal return after the event is significantly higher than before the event at the traditional level. Another finding shows that there is no significant difference in trading volume activity between before and after the event.

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Published

2018-06-28

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