FIRM: Journal of Management Studies
Vol 6, No 2 (2021): FIRM JOURNAL OF MANAGEMENT STUDIES

MEASUREMENT OF FINANCIAL RISK TO ECONOMIC POLICY IN INDONESIA

Yoseva Maria Pujirahayu Sumaji (Universitas Ciputra Surabaya)



Article Info

Publish Date
19 Sep 2021

Abstract

The world of economy is in a state of uncertainty as shown by the improvement in the projected growth of the world by international institutions. The state of development of the world economy is flutuative due to declining economic growth of developed and developing countries, lower commodity prices, and the difference in direction between monetary and fiscal policy. The development of the world economy can be seen from the Real Effective Exchange Rate (REER) indicator, which sees the exchange rate as a measure of the state of the world economy. This can attract investors to invest in Indonesia due to good REER conditions. REER can be used as one of the reference by investors to make investment decisions in the company that will later affect the company's decision-making. Decision-making will determine how far the company will experience the financial risks that will be set up in risk management. There are 120 non-financial companies registered with IDX Indonesia. The sampling techniques in this study used nonprobability sampling. The inferential statistical analysis conducted in this study is through classic assumption tests, regression analysis, mediation tests and hypothesis tests. The results of the study showed that the Risk Measurement of Economic Policy in Indonesia had a significant positive effect.

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Journal Info

Abbrev

FIRM-JOURNAL

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

FIRM: Journal of Management (Print ISSN: 2527-5852; Online ISSN 2541-3473) is a scientific journal in the field of management that publishes scientific writings on pure and applied research as well as general commentaries on the development of theories, methods and related applied sciences. The ...