Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia

Research Article

Comparative Analysis of Stock Price and Trading Volume Before and After The Fed Interest Rate Increase: An Event Study on LQ45 and Dow Jones Index Companies

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  • @INPROCEEDINGS{10.4108/eai.13-9-2023.2341131,
        author={Nabila  Salmarani and Lindrianasari  Lindrianasari and Ratna  Septiyanti and Niken  Kusumawardani},
        title={Comparative Analysis of Stock Price and Trading Volume Before and After The Fed Interest Rate Increase: An Event Study on LQ45 and Dow Jones Index Companies},
        proceedings={Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2023},
        month={12},
        keywords={abnormal returns event study trading volume activity},
        doi={10.4108/eai.13-9-2023.2341131}
    }
    
  • Nabila Salmarani
    Lindrianasari Lindrianasari
    Ratna Septiyanti
    Niken Kusumawardani
    Year: 2023
    Comparative Analysis of Stock Price and Trading Volume Before and After The Fed Interest Rate Increase: An Event Study on LQ45 and Dow Jones Index Companies
    ICEBE
    EAI
    DOI: 10.4108/eai.13-9-2023.2341131
Nabila Salmarani1,*, Lindrianasari Lindrianasari1, Ratna Septiyanti1, Niken Kusumawardani1
  • 1: Universitas Lampung
*Contact email: salmaraninabila@gmail.com

Abstract

This study examines a comparative analysis of stock prices and trading volumes in response to Federal Reserve interest rate in 2022. The research aims to investigate the market reactions following these events. This analysis use secondary data and the purposive sampling method is used to draw samples. Depend on the samples taken, namely LQ45 Index with Dow Jones Index, 75 research samples were obtained. This market reaction study uses stock prices as measured by abnormal return variables, and stock volume is measured by trading volume activity. The analysis outcomes show that there is a noteworthy outcome on stock prices in the increase in the Federal Reserve interest rate and an insignificant effect on stock volume.