THE INFLUENCE OF X ON THE INFRASTRUCTURE SECTOR’S STOCK MARKET DURING PRESIDENTIAL ELECTION IN INDONESIA

• Main Author: Fathima Rachmadhany, Alyssa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82955
• Institution: Institut Teknologi Bandung

Social media has become one of the most powerful online-based man-made tools in this generation. The platform goes beyond connecting people all over the world, it's a place where collective movements can be initiated, where business enhance their brand value, and where politicians seek for voters. It is an intriguing platform to study its behavior and its impact on various matters such as politics, business, social, or culture. X as one of social media platforms have proven its influence on stock market performance or its role as a medium for citizens to voice their opinions during the presidential election. However, there are limited studies on X and its impact on the stock market at the time of the presidential election. Therefore, this study aims to understand how well X as social media represents the condition of the infrastructure sector’s stock market during the presidential election in Indonesia. Stock market performance will be measured by stock return and trading volume, as well as the company’s financial ratio to amplify the effect. Using Stata 17.0 and panel data regression with a common effect model as the methodology, the result shows that X does not significantly impact the stock return. However, X has a minimal impact on the trading volume of the industry. Even though the current impact of social media on the stock market is barely recognizable, the potential impact of the platform should still be monitored, so that stakeholders can make wise decisions regarding it.