Hotel Stock Price Performance During the Covid-19 Pandemic in Indonesia

Regina Sandra Kusuma; Arthik Davianti

doi:10.23887/ijssb.v5i1.31117

Authors

Regina Sandra Kusuma Satya Wacana Christian University
Arthik Davianti Satya Wacana Christian University

DOI:

https://doi.org/10.23887/ijssb.v5i1.31117

Keywords:

COVID-19, Event Study, Hotel Price, Stock Price, Indonesia

Abstract

This study aims to analyze the Indonesian hotel stock price performance during the pandemic of Covid-19 by testing the effect of Covid-19 pandemic on stock return and abnormal stock return. The data were collected from secondary data at www.finance.yahoo.com, Indonesian hotel companies stock period from 26 February 2020 to 2 March 2020 during the pandemic of Covid-19. Further, the data were analyzed by using Event Study Methodology to examine the effect of Covid-19 pandemic on Indonesian hotel stock return and abnormal return. The result of this study finds that there is stock reaction after the announcement of Covid-19 pandemic in Indonesia during 15 days after the announcement. Also in this research, can be found a relationship between the stock condition with the pandemic. This research can be used as a reference for investors for their investments by looking at the relationship between the Indonesian hotel companies stock and pandemic of Covid-19.

Author Biography

Regina Sandra Kusuma, Satya Wacana Christian University

Accounting student of Economic and Business Faculty, Satya Wacana Christian University

References

Ajayi, V. O. (2017). Primary Sources of Data and Secondary Sources of Data. (September), 1–6. https://doi.org/10.13140/RG.2.2.24292.68481.

Badan Pusat Statistik. (2020a). Jumlah Kunjungan Wisman Menurut Kebangsaan dan Bulan Kedatangan Tahun 2017 - 2020. Retrieved from www.bps.go.id website: https://www.bps.go.id/dynamictable/2018/07/30/1548/jumlah-kunjungan-wisman-menurut-kebangsaan-dan-bulan-kedatangan-tahun-2017---2020.html.

Badan Pusat Statistik. (2020b). Tingkat Penghunian Kamar pada Hotel Bintang di Indonesia, 2008 - 2020. Retrieved June 7, 2020, from www.bps.go.id website: https://www.bps.go.id/linkTableDinamis/view/id/980.

Bakar, N. A., & Rosbi, S. (2020). Effect of Coronavirus disease (COVID-19) to tourism industry. International Journal of Advanced Engineering Research and Science, 7(4), 189–193. https://doi.org/10.22161/ijaers.74.23.

Banerjee, A., & Chaudhury, S. (2010). Statistics without tears: Populations and samples. Industrial Psychiatry Journal, 19(1), 60. https://doi.org/10.4103/0972-6748.77642.

Chandra, T. (2013). the Impact of Fuel Price Increase on Stock Price in Indonesia Stock Exchange. Journal of Economics, Business, and Accountancy | Ventura, 16(3), 385. https://doi.org/10.14414/jebav.v16i3.219.

Chen, M. H., Agrusa, J., Krumwiede, D., & Lu, H. J. (2012). Macroeconomic Influences On Japanese Hotel Stock Returns. Journal of Hospitality Marketing and Management, 21(1), 81–99. https://doi.org/10.1080/19368623.2011.611731.

Chen, M. H., Jang, S. C. (Shawn), & Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: An event-study approach. International Journal of Hospitality Management, 26(1), 200–212. https://doi.org/10.1016/j.ijhm.2005.11.004.

CNN Indonesia. (2020). Update Corona 28 Maret: 1.155 Kasus, 102 Meninggal, 59 Sembuh. Retrieved June 6, 2020, from www.cnnindonesia.com website: https://www.cnnindonesia.com/nasional/20200328125504-20-487797/update-corona-28-maret-1155-kasus-102-meninggal-59-sembuh.

Dicle, M. F., & Levendis, J. (2011). Importing Financial Data. The Stata Journal: Promoting Communications on Statistics and Stata, 11(4), 620–626. https://doi.org/10.1177/1536867x1201100408.

Djalante, R., Lassa, J., Setiamarga, D., Sudjatma, A., Indrawan, M., Haryanto, B., … Warsilah, H. (2020). Review and analysis of current responses to COVID-19 in Indonesia: Period of January to March 2020. Progress in Disaster Science, 6(April), 100091. https://doi.org/10.1016/j.pdisas.2020.100091.

Hoque, A., Shikha, F. A., Hasanat, M. W., Arif, I., & Abu Bakar Abdul Hamid. (2020). The Effect of Coronavirus (COVID-19 ) in the Tourism Industry in China. Asian Journal of Multidisciplinary Studies, 3(1).

Kim, S. S., Chun, H., & Lee, H. (2005). The effects of SARS on the Korean hotel industry and measures to overcome the crisis: A case study of six Korean five-star hotels. Asia Pacific Journal of Tourism Research, 10(4), 369–377. https://doi.org/10.1080/10941660500363694.

Majid, U. (2018). Research Fundamentals: Study Design, Population, and Sample Size. Undergraduate Research in Natural and Clinical Science and Technology (URNCST) Journal, 2(1), 1–7. https://doi.org/10.26685/urncst.16.

Mavondo, F. (2016). Mavondo, F. T. and Reisinger, Y. (February 2005). " Travel Anxiety and Intentions to Travel Internationally: Implications of Travel Risk Perception " has been published in the Journa ... (April).

Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: Impact on the Global Economy. SSRN Electronic Journal, (March). https://doi.org/10.2139/ssrn.3562570.

Ranasinghe, R., Damunupola, A., Wijesundara, S., Karunarathna, C., Nawarathna, D., Gamage, S., … Idroos, A. A. (2020). Tourism after Corona: Impacts of Covid 19 Pandemic and Way Forward for Tourism, Hotel and Mice Industry in Sri Lanka. SSRN Electronic Journal, (April). https://doi.org/10.2139/ssrn.3587170.

Ratnaningsih, N. M. D., & Widanaputra, A. A. G. P. (2019). The reaction of Indonesian capital market to political event the announcement of Indonesia presidential election 2019 results. International Research Journal of Management, IT and Social Sciences, 6(6), 87–94. https://doi.org/10.21744/irjmis.v6n6.765.

Sharafoddin, S., & Emsia, E. (2016). The Effect of Stock Valuation on the Company’s Management. Procedia Economics and Finance, 36(16), 128–136. https://doi.org/10.1016/s2212-5671(16)30024-7.

Soedjatmiko. (2015). Sports Tourism Development in Indonesia. Journal of Sports Science, 3(5). https://doi.org/10.17265/2332-7839/2015.08.009.

Strielkowski, W. (2020). COVID-19 recovery strategy for tourism industry COVID-19 recovery strategy for tourism industry. (March), 1–3. https://doi.org/10.13140/RG.2.2.19039.82086.

World Health Organization. (2020a). Coronavirus disease (COVID-19) outbreak situation. Retrieved June 6, 2020, from www.who.int website: https://www.who.int/emergencies/diseases/novel-coronavirus-2019.

World Health Organization. (2020b). What is Coronavirus? Retrieved June 6, 2020, from www.who.int website: https://www.who.int/emergencies/diseases/novel-coronavirus-2019/coronavirus-disease-answers?query=What+is+COVID19%3F.