THE EFFECT OF RUSSIA'S INVASION OF UKRAINE TOWARDS THE STOCK PRICES OF TRANSPORTATION AND LOGISTICS COMPANIES LISTED ON THE INDONESIAN STOCK INDEX

• Main Author: Alana Zidan Nabil, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83428
• Institution: Institut Teknologi Bandung

This study examines the impact of Russia's invasion of Ukraine on the stock prices of transportation and logistics companies listed on the Indonesian Stock Exchange (IDX). Using an event study methodology, it analyzes abnormal returns and trading volume activity before and after the invasion on February 24, 2022. The sample consists of 29 companies, selected to ensure data completeness and avoid confounding corporate actions. The research employs descriptive statistics, data normality tests, and hypothesis testing using Paired Sample T-test and Wilcoxon Signed Rank Test methods. The findings reveal no significant changes in abnormal returns and only a slight, non-significant change in trading volume activity, indicating limited market response to the geopolitical event. This result contrasts with other studies showing significant stock market disruptions during similar important events, such as government decision announcements, pandemic, and geopolitical crises. This suggests that the invasion did not significantly impact the stock performance of Indonesia's transportation and logistics sector. The study highlights how external shocks, like geopolitical conflicts, influence emerging market sectors and offers insights for investors and policymakers on managing such risks. The minimal impact observed may be due to Indonesia's geographical distance from the conflict, the sector's domestic and regional focus, and effective risk management strategies by the companies involved.