The Effect of Stock Liquidity and Bid-Ask Spread on Price Reversal Around the Announcement of the Russian Invasion in LQ-45 Companies Listed on the Indonesian Stock Exchange

Karimannisa Alieni, Nur Aida Arifah Tara

This study aims to examine and analyze the effect of Stock Liquidity and Bid-Ask Spread on Price Reversal around the announcement of Russia's invasion of Ukraine for companies listed in the LQ-45 index on the Indonesia Stock Exchange. The announcement of the invasion is a significant event with major impacts on the global financial market. In this context, this research wants to understand how Stock Liquidity and Bid-Ask Spread affect reversible price changes following the announcement of Russia's invasion. The type of research is associative research with data collection methods namely survey samples. The population in this study were 50 companies listed in the LQ-45 index on the IDX from January to March 2022, using the sampling method namely purposive sampling. Based on the established criteria 40 sample companies were obtained. The data analysis method used is multiple linear regression. The result of this study shows that Stock Liquidity by proxy Trading Volume Activity has a positive and significant effect on Price Reversal, Bid-Ask Spread by proxy the Relative Average Bid-Ask Spread has a positive but not significant effect on Price Reversal.

2024/06/15

Stock Liquidity, Bid-Ask Spread, Price Reversal, Russia's Invasion of Ukraine

754

758

3047-857X

Proceedings of the International Symposium on Management (INSYMA)

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

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