Construction Companies Stock Performance in Indonesia Stock Exchange

Abstract

Constructionis a growing industry and is characterizedby the support from government policies. This study aimsto determine the performance of the construction company's stock within the Indonesia stockexchange during the period of 2010-2014. It is seen from the financial performance referring to profitability, liquidity,solvency, and market activity ratios. Objects of this research are the 6 construction companies listedon the Indonesia stock exchange. Apart from analyzingthe effect of the financial performance using panel data, this research also analyzed the abnormalstock return of, reshuffle ministers, natural disasters and Indonesian Presidentialelection events. This research provide feedback on investing and managing a companythat views on financial factors and various important events. The results showed that all financial ratios affect the stock performance. Furthermore, the reshuffle cabinetand presidential elections gave positive significant influence on the stock performance that indicates its sensitivity towards financial performanceand events.Keywords: Construction, Panel Data,  Abnormal Return