Mauizhotul Hasanah

The volatility of rising oil prices has certainly made the market more out of control. Market participants are very sensitive to various information and to global issues such as Russia’s invasion of Ukraine. This study aims to review the reaction of the Indonesian Islamic stock market in the energy sector before and after Russia’s invasion of Ukraine. The variables used are stock returns, abnormal returns, and trading volume activity. The sample of this study is represented by Indonesian sharia stocks in the energy sector using a purposive sampling method. The research period was from February 4, 2022 to March 18, 2022. The research method used was the Event Study Method (ESM) and paired sample different tests with the Microsoft Excel program and SPSS version 26. The results of the study show that there is a significant difference in the average stock returns in the periods of 3, 7, and 14 days before and after Russia’s invasion of Ukraine. There are also differences in abnormal returns for the 3-day and 14-day observation periods, while for the 7-day observation period, there are no significant differences in abnormal returns. Besides, there is an average difference in volume activity during the periods of 3 days, 7 days, and 14 days before and after the Russian invasion of Ukraine. Indirectly, this information about Russia’s invasion of Ukraine affected the performance of the capital market. This also shows that the semi-strong form of the efficient market hypothesis is proven in this study.

The COVID-19 pandemic has affected bank lending growth to the point of decreasing banking profitability. Therefore, this study aims to analyze the differences in the performance of conventional banks and Islamic banks before and after the COVID-19 pandemic in Indonesia. This study uses secondary data with a quantitative approach. The performance is measured using four financial ratios: CAR, ROA, LDR or FDR, and BOPO. The population in this study is conventional banking and Islamic banking in Indonesia. The observation period for this study starts from pre-COVID-19 in June 2016 to March 2019 and post-COVID-19 from March 2020 to June 2023. The hypotheses were tested using the paired T-test and the one-sample Kolmogorov-Smirnov test for normally distributed data. The results of the one-sample Kolmogorov-Smirnov test on conventional banks show that whether there is a distinction between the performance of conventional banks and Islamic banks before and after the COVID-19 pandemic in Indonesia. The results of the graphic investigation indicate that there are financial ratios that have experienced an increase in performance, to be specific the CAR, ROA, and BOPO proportions, whereas the FDR or LDR tend to encounter a decrease in performance after COVID-19. There was an increase and decrease between before and after the outbreak of the COVID-19 pandemic in each proportion, which is still in the category with healthy and good banking qualification.

Acknowledgment
The substantial financial support for this study through the HIT funding scheme, provided by the Research and Innovation Institute (LRI) of Universitas Muhammadiyah Surakarta, is greatly appreciated by the authors.