Capital Market Reaction to The Indonesian Presidential Election in 2024

This study is to examine how the capital markets will respond to the Indonesian presidential election in 2024.There were 500 enterprises in the study's samples, which were divided into different sectors of Indonesia's capital market. The analytical tool used in this research is the Structural Equation Model (SEM). The research results show that Market Returns affect Abnormal Returns and stock return. Abnormal Returns influence Stock Returns. Market Returns influence Stock Returns through abnormal Returns. The novelty in the research is abnormal returns as anintervening variable because abnormal returns can influence stock prices due to political events.This research can provide additional information for investors to pay attention to political conditions that have an impact on stock returns.The sampling period was short considering the long election process.