Herding Behavior in the Stock Market of Identified Boycotted Indonesian Stock Exchange Companies After the Determination of MUI Fatwa No. 83/2023

Research Aims: This study aims to detect herding behavior in the stock market of companies on the Indonesia Stock Exchange that are the targets of a boycott by the Indonesian people in rising, falling, and overall combined price conditions after the announcement of MUI Fatwa Number 83 of 2023. Design/methodology/approach: The analysis tool used is the Quantile Regression Test to detect herding behavior that occurs. There are 6 companies that can be identified with stock price data taken during 120 working days of the stock exchange in Indonesia after the fatwa was issued from November 9, 2023 to May 20, 2024. Research Findings: The results show that there is no indication of herding behavior when the market is rising, falling and overal from any quantile tested using quantile regression. Theoretical Contribution/Originality: This result is suspected because there is the use of words in the fatwa that cause debate and the absence of a list of products listed. Other supporters such as investor literacy have increased due to the rapid development of technology which is in line with the increasing ability to think or intellectually to make decisions in investing. On the other hand, because of the increased ability, investor confidence also increases so that decisions made can be rational in investing. Research limitation and implication: This research is limited to several companies that can be found by the researcher, and is limited by the time until this research is carried out. This research can provide an overview of the turmoil that occurs in the market and how the market responds to negative sentiment that is occurring. Keywords: Boycott, Fatwa MUI, Herding Behavior, Intellectual, Literacy