ABSTRACT
Noneconomic events are one of the main factors that might affect capital markets. This Indonesia Stock Exchange (IDX) research aimed to test activities involving aviation accidents. We analyzed stock price and trade volume after several commercial aviation accidents in 2014–2018: Air Asia (December 28, 2014), Trigana (August 16, 2015), and Lion Air (October 29, 2018). We adopted quantitative methods with secondary data of daily stock price summary. The population comprised aviation companies listed on the IDX, and the period observed was three days, five days, and seven days before and after the accidents. Paired sample t-tests were conducted for normally distributed data, along with the Wilcoxon signed rank test and vice versa. The average abnormal return of five days before and after the Trigana accident represented a significant difference. It meant that the event has information content that can cause capital markets to react. Before and after the Air Asia and Lion Air accidents, the abnormal return differed insignificantly. The results for the Air Asia, Trigana, and Lion Air accidents also had insignificant differences.
