The Relationship Between PT Astra International Tbk Corporate Communication Strategy on Google Trends and ASII Stock Price Returns

Abstract

Astra International Tbk is one of the blue-chip companies listed on the Indonesia Stock Exchange. Established in 1957, the company has multiplied with many subsidiary companies. It also carries out corporate communication strategies and publishes them in the media. Many previous studies investigate and find the relationship between news, trending search, and stock price movements. However, the study uses machine learning methods that are hard to use by regular investors. This research aims to find the relationship between ASII stock price returns and Astra corporate communication strategies that are popular on Google Trends weekly reports. This research uses descriptive statistical analysis to find the patterns and relationship between stock price returns and Google Trends' weekly rising keywords related to Astra from April 1st, 2022, to May 6th, 2023. The result of this research shows no significant relationship between those variables. However, this research discovers several patterns that can be useful for short-term traders. For example, career on Astra is a trending search keyword often followed by positive stock returns. In contrast, keywords related to Astra subsidiary businesses and corporate news are followed by the slightest chance of positive returns. Moreover, trending search keywords related to the company's corporate social responsibility actions are followed by a 50% chance of positive stock returns. Finally, traders must consider other indicators besides Google Trends, such as news sentiment, before making trading decisions. Furthermore, this research also benefits corporate communication professionals as a reference to their strategy, especially during this post-pandemic era.