Daftar Isi:
  • The purpose of this research is to test whether the eruption incident of Kelud Mountain in Kediri on 2014 influence the activity in Indonesian Financial Capital Market. The sample that used in this research are stock that include in Agriculture Sector and Cement Sub Sector. The amount of the sample that taken for this research is about 16 Agriculture Companies and 4 Cement Companies using purposive sampling method. Data collection are done by observation method. The analysis of this research use technique One Sample t-test and Independent Sample t-test. The results of this research are (1) there is negative abnormal return that accepted by investors when eruption incident of Kelud Mountain happened. (2) the average of Abnormal Return when eruption incident happened are smaller than before the eruption incident happened. (3) the average of Abnormal Return when eruption incident happened are not bigger than after eruption incident happened. (4) there are no difference in average of trading volume when eruption incident happened and after eruption incident happened. Keywords : abnormal return, trading volume activity, event study, and eruption.