Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia
10.22059/ier.2024.369956.1007903
Abstract
The launch of the Indonesia Carbon Exchange (IDXCarbon) on September 26th, 2023, is an important milestone for Indonesia's decarbonization commitment towards Net Zero Emission by 2060 or sooner. This paper aims to analyze the Indonesian capital market reaction to the announcement of the IDXCarbon. Using the event study approach and market model method, this study used 735 companies listed on the Indonesia Stock Exchange (IDX) which were then divided into eleven sectors. The sample period taken for the study is 30 days for the estimation window and 10 days for the event window. We estimate the cumulative abnormal return by summing the abnormal return of 5 days before and after the event. The results of this study showed that the Indonesian capital market reacted in different ways following the various event windows. The study found that basic material and energy industries have been adversely impacted by the announcement of IDXCarbon. However, financial, healthcare, and properties & real estate industries responded positively to the announcement of IDXCarbon.
Saputra, B. , Setiawan, D. , & Aryani, Y. A. (2024). IDXCarbon Unleashed: An Event Study Analysis of Its Impact on the Indonesian Capital Market. Iranian Economic Review, (), -. doi: 10.22059/ier.2024.369956.1007903
MLA
Bagas Saputra; Doddy Setiawan; Y. Anni Aryani. "IDXCarbon Unleashed: An Event Study Analysis of Its Impact on the Indonesian Capital Market", Iranian Economic Review, , , 2024, -. doi: 10.22059/ier.2024.369956.1007903
HARVARD
Saputra, B., Setiawan, D., Aryani, Y. A. (2024). 'IDXCarbon Unleashed: An Event Study Analysis of Its Impact on the Indonesian Capital Market', Iranian Economic Review, (), pp. -. doi: 10.22059/ier.2024.369956.1007903
CHICAGO
B. Saputra , D. Setiawan and Y. A. Aryani, "IDXCarbon Unleashed: An Event Study Analysis of Its Impact on the Indonesian Capital Market," Iranian Economic Review, (2024): -, doi: 10.22059/ier.2024.369956.1007903
VANCOUVER
Saputra, B., Setiawan, D., Aryani, Y. A. IDXCarbon Unleashed: An Event Study Analysis of Its Impact on the Indonesian Capital Market. Iranian Economic Review, 2024; (): -. doi: 10.22059/ier.2024.369956.1007903
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