THE IMPACT OF JAPAN EARTHQUAKE DISASTER ON INDONESIAN AUTOMOTIVE AND AUTO PART SUBSECTOR An Event Study

Japan earthquake disasters inflicted serious consequences on Japan economy. On March 11, 2011, a 9.0 of Ritcher scale undersea earthquake hit Tohoku in Japan. Although Tohoku region is only contribute for about 2.5 percent of Japan total economy, the ripple effects of earthquake disaster were significantly impacting Japan overall economy. This empirical study investigates the impact of Japan earthquake disaster on Indonesian automotive and auto part subsectors. The first objectives of this research is to investigate whether the event of Japan earthquake disaster contains valuable information that may affect stock performance of companies that are listed in Indonesian automotive and auto part subsector as reflected by the presence of abnormal return during the event. Researcher would like to measure the occurrence of abnormal returns in Indonesian automotive and auto part subsector at event day and after event. The second objective is to measure the difference of stock trading activities of companies that are listed in Indonesian automotive and auto part subsector at event day and after event. This research would like to utilize Japan earthquake as a phenomenon or an event of interest. Japan earthquake or the event will be studied thoroughly by using event study approach. Samples are selected through purposive sampling method by considering four criteri