Research Paper
Year: 2020 | Month: June | Volume: 7 | Issue: 6 | Pages: 314-328
Market Reaction to Government Regulation in Lieu of Law No. 1 Year 2017 and Law No.9 Year 2017
Lesia Fatma Ginoga1, Netti Tinaprilla2, Wita Juwita Ermawati2
1Graduate Student at Management Science Study Program, 2Lecturer at Department Management,
Faculty of Economics and Management, Bogor Agricultural University (IPB), Bogor Indonesia
Corresponding Author: Lesia Fatma Ginoga
ABSTRACT
Tax is one of the largest revenue sectors of the state treasury. State revenue in the tax sector plays an important role for national development and the sustainability of a country's governance system. The results of tax revenue performance are not optimal. One of the causes there are still many taxpayers who have not reported their assets both domestically and abroad. The steps taken by the government are issuing Government Regulation the Law of the Republic of Indonesia No. 1 Year 2017 concerning Access to Financial Information for Tax Purposes established on May 8, 2017. After the issuance of Government Regulation in Lieu of Law No. 1 Year 2017, on August 23, 2017 the government adopted a policy that the Government Regulation in Lieu of Law was made Law No. 9 Year 2017 concerning access to financial information for tax purposes. This research will analyze the abnormal return and trading volume activity before and after the issuance of Government Regulation in Lieu of Law No. 1 Year 2017 and Law No. 9 Year 2017 concerning access to financial information for tax purposes with event study method. Based on the results of the study there was no significant difference in the average abnormal return before and after the announcement of the issuance of Government Regulation in Lieu of Law No. 1 Year 2017 and Law No. 9 Year 2017.
Keywords: abnormal return, event study, Government Regulation in Lieu of Law No. 1 Year 2017, Law No. 9 Year 2017, trading volume activity
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