The Impact of the Palestine–Israel Conflict on Product Boycotts: A Comparative Analysis of Israeli-Affiliated Products Vs Indonesian Local Non-Affiliated Products from an Investor Behavior and Financial Performance Perspective

This study aims to analyze the differences in investor behavior and financial performance and their impact on Israeli-affiliated companies and local non-affiliated Israeli companies due to the Israeli Palestinian conflict. The research data was taken at the beginning of the conflict, one month after the beginning of the conflict, the issuance of the statement of haram to buy products supporting Israel from MUI (Indonesian Ulama Council), the start of the ceasefire, and the end of the ceasefire. The event window used in this study is 11 days, namely 5 days before the event announcement, 1 day on the event occurs or begins, and 5 days after the event announcement. The results of this study indicate that in event studies 1, 4 and 5 show no significant difference in the average abnormal return, while the average trading volume shows a significant difference before and after the event. Event study 2 shows no significant difference in either the abnormal return or the trading volume before and after the event. While the test results on event study 3 show that there is a significant difference in both abnormal returns and trading volume before and after the event.

Abnormal return, trading volume, event study

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