| On July 1, 2013, the Indonesian government, through the Ministry of Industry issued regulations of the Low Cost Green Car (LCGC). The regulation is a reference to an automotive company that manufactures the vehicles segment, and become informed as well for the people, especially the stock market participants. The purpose of this study was to determine the difference in the market reaction to the announcement of the Ministry of Industry Regulations regarding LCGC against abnormal return and trading volume activity. This study uses event study approach, by observing the abnormal return and trading volume activity in the period 60 days before and after the announcement of the rules. This study consist to test the case against two companies that have go public and produce cars, PT Astra International Tbk and PT Indomobil Sukses International Tbk. Tests on the information content made using the paired samples T-test and Wilcoxon test for abnormal returns and trading volume activity of each stock. The results of these studies is no difference significantly abnormal returns in the period before and after the announcement of the two companies. However, there is a significant trading volume activity in the period before and after the announcement of the two companies. |