Impact of Smoking Ban Fatwa on Indonesian Tobacco’s Company
Open Access
- 21 April 2013
- journal article
- Published by Center for Strategic Studies in Business and Finance SSBFNET in International Journal of Finance & Banking Studies (2147-4486)
- Vol. 2 (2), 76-86
- https://doi.org/10.20525/ijfbs.v2i2.147
Abstract
The objective of this study is to assess the share price reactions to smoking ban fatwa on Indonesia tobacco’s company. We expect that the smoking ban fatwa in the world’s largest Muslim population will hit the tobaccos industry revenues, lower tobacco’s company profit and eventually affect the share price of those firms. We use event study methodology and standard market model to calculate abnormal returns of the tobacco’s firms related to the news of smoking ban fatwa. Our study failed to find a statistically significant effect of smoking ban fatwa on tobacco’s firm stock market return. It suggests that the investors do not see the fatwa as a factor that may control the tobacco consumption in Indonesia – thus it may not affect the tobacco’s firm revenues and profit in the futureKeywords
This publication has 4 references indexed in Scilit:
- The Impact of Smoking Bans on the Hospitality Industry: New Evidence from Stock Market ReturnsSSRN Electronic Journal, 2008
- Short-run economic effects of the Scottish smoking banInternational Journal of Epidemiology, 2006
- Cigarette and Tobacco Consumption: Have Anti‐Smoking Policies Made a Difference?Economic Record, 1999
- The fourth largest market in the worldTobacco Control, 1999