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
@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
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.
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