Indonesian Journal of Law and Economics Review
Vol 11 (2021): May

The Effect of Economic Growth, Inflation Rate, and Interest Rates of Bank Indonesia on the Composite Stock Price Index on the Indonesia Stock Exchange for the 2015-2019 Period

Ahmad Firdausi Akmal Al Haytami (Universitas Muhammadiyah Sidoarjo)
Heri Widodo (Universitas Muhammadiyah Sidoarjo)

Article Info

Publish Date
18 May 2021

Abstract

Generally, investors use the Composite Stock Price Index (IHSG) as a parameter of stock performance listed on the Indonesian stock exchange. One of the factors that can affect the IHSG is macroeconomic factors such as economic growth, inflation, and interest rates. This study aims to determine the effect of economic growth, inflation rate, and interest rates of Bank Indonesia on the IHSG. The population and sample in this study are quarterly economic growth, inflation, Bank Indonesia interest rates, the monthly Composite Stock Price Index (IHSG) from 2015-2019. Testing the hypothesis of this study using validity and reliability tests with the SmartPLS version 3 application. The results showed that the variables of economic growth and inflation had no significant effect on the Composite Stock Price Index (IHSG). Meanwhile, the interest rate variable of Bank Indonesia has a significant effect on the IHSG.

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Journal Info
Indonesian Journal of Law and Economics Review
Website

Abbrev

ijler

Publisher

Universitas Muhammadiyah Sidoarjo

Subject

Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Indonesian Journal of Law and Economics Review (IJLER) is published by Universitas Muhammadiyah Sidoarjo four times a year. This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of ...