Impact of Boycott Action on Financial Performance and Market Reaction
DOI:
https://doi.org/10.37680/ijief.v5i2.7316Keywords:
Boycott action, Financial Performance, Market Reaction, Investor ResponseAbstract
Boycott is widely recognized as a form of public protest related to the Israel–Palestine conflict, manifested through consumers’ decisions to refrain from purchasing or using products affiliated with pro‑Israel entities. This research seeks to examine the differences in companies performance in Indonesia before and during the boycott period by employing a quantitative research design. The study population comprises 268 companies listed on the Indonesia Stock Exchange from 2020-2023, with purposive sampling applied to select relevant firms. Data were processed using descriptive statistical analysis to capture shifts in key financial indicators. The findings indicate that performance measures such as ROE, ROA, CR, DAR, and DER experienced a notable decline, which in turn influenced stock prices and Trading Volume Activity. In contrast, company size remained relatively stable throughout the observed period. These declines illustrate a negative market reaction, reflecting reduced investor confidence and diminished market enthusiasm toward companies perceived to be linked with boycott‑affected products.
Downloads
References
Afego, P. N., & Alagidede, I. P. (2021). What does corporate social advocacy signal ? Evidence from boycott participation decisions. Journal of Capital Markets Studies, 5(1), 49–68. https://doi.org/10.1108/JCMS-10-2020-0040
Anisa, O. N., Agung, R. E. W., & Nurcahyono, N. (2022). Faktor-Faktor yang Mempengaruhi Harga Saham: Berdasarkan Signaling Theory. Jurnal Akuntansi Indonesia, 11(2), 85–95. https://doi.org/10.30659/jai.11.2.85-95
Bak, O., Shaw, S., Colicchia, C., & Kumar, V. (2023). A Systematic Literature Review of Supply Chain Resilience in Small-Medium Enterprises (SMEs): A Call for Further Research. IEEE Transactions on Engineering Management, 70(1), 328–341. https://doi.org/10.1109/TEM.2020.3016988
Bangun, N., & Natsir, K. (2023). The Effect Of EVA, Leverage, And Liquidity On The Stock Price. Jurnal Akuntansi, 27(1), 62–79. https://doi.org/10.24912/ja.v27i1.1174
Bon, S. F., & Hartoko, S. (2022). The Effect of Dividend Policy, Investment Decision, Leverage, Profitability, and Firm Size on Firm Value. European Journal of Business and Management Research, 7(3), 7–13. https://doi.org/10.24018/ejbmr.2022.7.3.1405
Brigham, E. F., & Houston, L. F. (2011). Dasar-dasar manajemen keuangan (11th ed.). Salemba empat.
CNBC. (2023). Nasib Terkini Saham yang Terimbas Boikot Israel. https://www.cnbcindonesia.com/market/20231116132102-17-489570/nasib-terkini-saham-yang-terimbas-boikot-israel
Erick, C. (2021). pengaruh return on asset (ROA), debt to equity ratio (DER), dan earning per share (EPS) terhadap harga saham perusahaan pertambangan (sektor industri batubara) yang terdaftar di BEI pada tahun 2016-2018. Jurnal Manajemen Bisnis Dan Kewirausahaan, 5(1), 94–99.
Erol, S. (2023). Assessing the impact of the Covid-19 pandemic on the financial and economic structure performance of Turkish sea freight transport sector. Regional Studies in Marine Science, 57, 102749. https://doi.org/10.1016/j.rsma.2022.102749
Fahmi, I. (2020). Pengantar Manajemen Keuangan. Alfabeta.
Goh, T. S. (2023). Monograf: Financial Distress. Indomedia Pustaka.
Hanafi, M. M. (2016). Manajemen Keuangan (2nd ed.). BPFE-Yogyakarta.
Hanafi, M. M., & Halim, A. (2018). Analisis Laporan Keuangan (5th ed.). UPP STIM YKPN.
Harahap, S. S. (2016). Analisis Kritis Atas Laporan Keuangan (1st ed.). PT Grafindo Persada.
Hasan, A., & Rizaldi, A. R. (2023). The Impact of ROA and DAR on The BEI F&B Stock Price During Covid-19. Integrated Journal of Business and Economics, 7(1), 390–402. https://doi.org/10.33019/ijbe.v7i1.633
Ichsani, S., & Suhardi, A. R. (2015). The Effect of Return on Equity (ROE) and Return on Investment (ROI) on Trading Volume. Procedia-Social and Behavioral Sciences, 211, 896–902. https://doi.org/10.1016/j.sbspro.2015.11.118
IDX. (2023). Daftar Harga Saham yang Terkena Dampak Boikot Israel. https://www.idxchannel.com/market-news/daftar-harga-saham-yang-terkena-dampak-boikot-israel-sbux-as-malah-uptrend
Irawan, I., & Nasution, I. R. (2023). Identification of Underpricing Factors Initial Public Offering (IPO) Manufacturing Sector on The Indonesia Stock Exchange. Management Research and Behavior Journal, 3(1), 1–8. https://doi.org/10.29103/mrbj.v3i1.10496
Karunia, Y., Suparlinah, I., Putri, N. K., & Wiratno, A. (2022). Market Reaction in the Manufacturing Sector Share To the Event of the Approval of the Job Creation Law in 2020. Jurnal Riset Akuntansi Dan Bisnis Airlangga, 7(1), 1195–1210. https://doi.org/10.20473/jraba.v7i1.36178
Lasmana, A., Susandra, F., Warizal, & Arrahman, A. (2022). Reaksi Pasar Modal Terhadap Pengumuman Pertama Kasus Positif Covid-19 di Indonesia (Studi Kasus Perusahaan Sektor Aneka Industri). Jurnal Akunida, 8(1), 86–98. https://doi.org/10.30997/jakd.v8i1.5775
Maringka, T. S. (2024). DEBT-EQUITY RATIO TO STOCK PRICES : THE MODERATING EFFECT OF FINANCIAL PERFOMANCE OF THE MINING INDUSTRY. Jurnal Aplikasi Manajemen, 22(2), 586–600. https://doi.org/10.21776/ub.jam.2024.022.02.20
Mohamed, E. A., Ahmed, I. E., Mehdi, R., & Hussain, H. (2021). Impact of corporate performance on stock price predictions in the UAE markets: Neuro-fuzzy model. Intelligent Systems in Accounting, Finance and Management, 28(1), 52–71. https://doi.org/10.1002/isaf.1484
Mudzakar, M. K., & Wardanny, I. P. (2021). The Effect Of Return On Asset , Return On Equity , Earning Per Share , And Price Earning Ratio Toward Stock Return ( Empirical Study Of Transportation ). Turkish Journal of Computer and Mathematics Education, 12(8), 387–392.
Mulyono, N. H., & Fitriani, A. (2024). Faktor yang mempengaruhi volume perdagangan saham: struktur modal, profitabilitas dan likuiditas. Jurnal Integrasi Akuntansi Dan Bisnis, 1(2), 123–132. https://doi.org/10.29082/eew8g356
Nastiti, N. S., Widodo, S., & Budiyono, I. (2023). the Effect of Quick Ratio (Qr), Return on Asset (Roa), Debt To Equity Ratio (Der), and Book Value Per Share (Bvs) on Stock Price of Companies Listed in Jakarta Islamic Index (Jii) for the 2017-2021 Periods. Keunis, 11(2), 146–156. https://doi.org/10.32497/keunis.v11i2.4406
Ngoc, T. H., Minh, H. N., Anh, H. D. S., Khai, D. D., Thuy, T. M., Kim, P. N., & Hoang, T. N. (2024). The impact of accounting information on stock prices of enterprises in Vietnam stock market and Hong Kong stock market. The International Journal of Business Management and Technology, 8(3). https://www.theijbmt.com/archive/0957/1164012203.pdf
Nurwulandari, A., & Wahid, R. S. (2024). The Effect of Debt-to-Equity Ratio, Return on Asset, Current Ratio, and Total Asset Turnover on Stock Price: The Intervening Effect of Intrinsic Value in Indonesia’s Retail Business. Shirkah: Journal of Economics and Business, 9(1), 1–16. https://doi.org/10.22515/shirkah.v9i1.630
Ozcan, S., Sercemeli, M., & Celik, A. K. (2024). Analyzing the effects of Covid-19 pandemic on the financial performance of Turkish listed companies on Borsa Istanbul using the entropy-based grey relational analysis. International Journal of Economics and Financial Issues, 14(5), 109–124. https://doi.org/10.32479/ijefi.16430
Radhitya, M., & Toni, A. (2024). Pembingkaian Berita Boikot Produk Israel Di Media Online Republika.Co.Id. Media Mahardhika, 22(2), 253–261. https://doi.org/10.29062/mahardika.v22i2.829
Rahman, M. J., & Liu, R. (2021). Value relevance of accounting information and stock price reaction: Empirical evidence from China. Journal of Accounting and Management Information Systems, 1/2021, 4–27. https://doi.org/10.24818/jamis.2021.01001
Ramadhan, M., Batubara, M., Ahmadi, N., & Rahmani, B. (2024). The Effect of Return on Asset ( ROA ) And Current Ratio ( CR ) on Stock Prices Through Green Accounting As an Intervening Variable In Syariah Stock Companies Listed in Jakarta Islamic Index Period 2019-2023. 5(4), 2156–2172. https://doi.org/10.38035/dijefa.v5i4
Reuters. (2025). Unilever’s Indonesia headache worsens with boycott as local brands seize the day. https://www.reuters.com/business/retail-consumer/unilevers-indonesia-headache-worsens-with-boycott-local-brands-seize-day-2025-01-09/
Ross. (1977). The Determination of Financial Structure: The Incentive-Signalling Approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2469/dig.v27.n1.2
Rukman, R. (2024). Pengukuran Rasio Likuiditas dan Profitabilitas Kinerja Keuangan (Studi kasus pada PT Sentra Food Indonesia, Tbk). AKTIVA: Journal Of Accountancy and Management, 2(2), 147–156. https://doi.org/10.24260/aktiva.v2i2.2699
Salsabila, R. R., Triyonowati, & Suhermin. (2024). Influence of Return On Equity (ROE) and Debt Equity Ratio (DER) on Company Value and Share Prices. Indonesia Interdisipliinary Journal of Sharia Economics (IIJSE), 7(1), 909–928. https://doi.org/10.31538/iijse.v7i1.4514
Saputra, F., & Nofrialdi, R. (2022). Analysis Effect Return on Assets (ROA), Return on Equity (ROE) and Price Earning Ratio (PER) on Stock Prices of Coal Companies in the Indonesia Stock Exchange (IDX) Period 2018-2021. DIJEFA: Dinasti Internasional Journal of Economics, Finance and Accounting, 3(1), 82–94. https://doi.org/10.38035/dijefa.v3il
Scherf, M., Matschke, X., & Rieger, M. O. (2022). Stock market reactions to COVID-19 lockdown : A global analysis. Finance Research Letters, 45, 102245. https://doi.org/10.1016/j.frl.2021.102245
Setiawan, E. (2022). Profitabilitas ukuran perusahaan dan pertumbuhan assets serta pengaruhnya terhadap leverage pada perusahaan. Perkumpulan rumah cemerlang Indonesia.
Sholichah, F., Asfiah, N., Ambarwati, T., Widagdo, B., Ulfa, M., & Jihadi, M. (2021). The Effects of Profitability and Solvability on Stock Prices: Empirical Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(3), 885–894. https://doi.org/10.13106/jafeb.2021.vol8.no3.0885
Siswanto, D. J., Maudhiky, F., Wahyudi, I., Yanuar, T., Syah, R., Java, C., & Unggul, U. E. (2022). The Influence of Debt to Equity Ratio (DER), Return On Assets (ROA) and Company Size on Profit Growth. Journal of Social Science, 3(2137–2147). https://doi.org/10.46799/jss.v3i6.486
Subastyan, G. M. (2024). The Effect of Financial Ratios on Stock Prices. Eduvest - Journal of Universal Studies, 4(3), 1244–1257. https://doi.org/10.59188/eduvest.v4i3.1098
Suganda, T. R. (2018). Teori dan Pembahasan Reaksi Pasar Modal Indonesia. Seribu Bintang.
Sugiyono. (2019). Metode Penelitian Kuantitatif. Alfabeta.
Sugiyono, S. (2018). Metode penelitian pendidikan pendekatan kualitatif, kuantitatif, dan R & D. Alfabeta.
Sukartaatmadja, I., Khim, S., & Lestari, M. N. (2023). Faktor-faktor Yang Mempengaruhi Harga Saham Perusahaan. Jurnal Ilmiah Manajemen Kesatuan, 11(1), 21–40. https://doi.org/10.37641/jimkes.v11i1.1627
Sukesti, F., Ghozali, I., Fuad, F., Almasyhari, A. K., & Nurcahyono, N. (2021). Factors Affecting the Stock Price : The Role of Firm Performance. The Journal of Asian Finance, Economics and Business, 8(2), 165–173. https://doi.org/10.13106/jafeb.2021.vol8.no2.0165
Tandelilin, E. (2017). Pasar modal manajemen portofolio & investasi. PT Kanisius.
Tempo. (2024). MUI Ungkap Dampak Aksi Boikot Produk Terafiliasi Israel terhadap Produk Lokal. https://www.tempo.co/politik/mui-ungkap-dampak-aksi-boikot-produk-terafiliasi-israel-terhadap-produk-lokal-1183057
Ulfa, K. D., Hisamuddin, N., & Wardhaningrum, A. (2023). PENGARUH PERATAAN LABA, PERTUMBUHAN ASET DAN PERTUMBUHAN UTANG TERHADAP REAKSI PASAR (Studi Empiris Pada Perusahaan Pertambangan Sub Sektor Batubara). Among Makarti, 16(2), 123–135. https://doi.org/10.52353/ama.v16i2.473
Usman, B., Hasnam, M. G., Nurazi, R., Baihaqi, & Aujirapongpan, S. (2024). Exploring investor attention in Shariah markets, macroeconomic influences, and corporate performance: Insights from Indonesia. Social Sciences & Humanities Open, 10, 101015. https://doi.org/10.1016/j.ssaho.2024.101015
Villagra, N., Monfort, A., & Méndez-Suárez, M. (2021). Firm value impact of corporate activism: Facebook and the stop hate for profit campaign. Journal of Business Research, 137, 319–326. https://doi.org/10.1016/j.jbusres.2021.08.052
Xie, L., Wang, M., Luu, T., & Huynh, D. (2022). Trust and the stock market reaction to lockdown and reopening announcements : A cross-country evidence. Finance Research Letters, 46(May), 102361. https://doi.org/10.1016/j.frl.2021.102361
Yudaruddin, R., Lesmana, D., Eks, H., & Ginn, W. (2024). Borsa Istanbul Review Market reactions to the Israel-hamas conflict : A comparative event study of the US and Chinese markets. Journal of Economic and Administrative Sciences, 24(August), 1345–1357. https://doi.org/10.1016/j.bir.2024.10.005
Zakaria, M. (2021). Analisis Pengaruh Debt to Equity Ratio (DER), Return On Asset (ROA) dan Earning Per Share (EPS) terhadap Harga Saham melalui Kebijakan Dividen sebagai Variabel Intervening (Studi pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi yang Terdaftar di. Business Management Analysis Journal (BMAJ), 4(1), 75–96. https://doi.org/10.24176/bmaj.v4i1.5828
Zubir, Z. (2011). Manajemen Portofolio: Penerapannya dalam Investasi Saham. Salemba empat.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ira Sovia Siregar, Farraz Nabila Fachrezi, Wiwit Apit Sulistyowati
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright:
An author who publishes in Indonesian Journal of Islamic Ekonomics and Finance agrees to the following terms:
- Author retains the copyright and grants the journal the right of first publication of the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Author is able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book) with the acknowledgment of its initial publication in this journal.
- Author is permitted and encouraged to post his/her work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of the published work (See The Effect of Open Access).
License:
-
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
-
NonCommercial — You may not use the material for commercial purposes.
-
No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
.png)
