Differential analysis indicates a significant effect of product boycotts on stock prices, suggesting implications for companies amid the Israeli-Hamas conflict.
The Israeli-Hamas conflict in the Gaza Strip, which began on October 7, 2023, has had a significant impact on companies currently affiliated with Israel and its subsidiaries. Shares of companies allegedly affiliated with Israel experienced a decline in stock capitalization. This happened due to a decline in consumer demand, worker strikes, and alleged boycotts of these companies. The purpose of this study is to determine the effect of product boycotts on stock prices. The research sample is as many as 35 companies affiliated with Israel listed on the Jakarta Stock Exchange. The research method used is differential test analysis using the Paired Sample test. The results of the study show that there is an effect of the boycott on the stock price at a significance of 10%. However, at a significance level of 5%, it shows no influence. The results of this study can provide input to companies to be careful in providing support to parties who do not have empathy for humanity.
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Abbas et al. (2025) studied this question.
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