IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v12y2023i3p308-317.html
   My bibliography  Save this article

Analysis of global stock index, inflation and interest rates on the Indonesia Stock Exchange joint stock price index

Author

Listed:
  • Dahlia Pinem

    (Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia)

  • M.B. Nani Ariani

    (Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia)

  • Desmintari

    (Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia)

Abstract

This study examines the influence of global stock indices and macroeconomic conditions in Indonesia on the Jakarta Composite Index (JCI). The global stock indices analyzed in this study are the Dow Jones Industrial Average (DJIA), Nikkei 225 (N225), Shanghai Stock Exchange Composite (SSE), Strait Singapore index. The macroeconomic indicators that analyzed in this study are the inflation rate, the US dollar exchange rate against the Indonesian rupiah, and the BI rate. This study was conducted using secondary data. The research period was 3 years for 36 months from January 2018 to December 2020. The data used in this study are secondary data with a sample collection method using Purposive Sampling against JCI. Data analysis in this study was carried out using Microsoft Office Excel 2016, as well as hypothesis testing using panel data regression analysis with the Eviews program version 10.0 with a significance level of 5%. Research Results The results showed that in the short term, Index DJIA, Nikkei Index 225, Interest rates positively affect the movement of JCI. This suggests that an increase in the DJIA index, Nikkei 225 Index, and interest rates will result in an increase in the JCI, While Shanghai Index, STI, Inflation does not affect the JCI. Key Words:Global Stock Indices, Inflation, Interest rates

Suggested Citation

  • Dahlia Pinem & M.B. Nani Ariani & Desmintari, 2023. "Analysis of global stock index, inflation and interest rates on the Indonesia Stock Exchange joint stock price index," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(3), pages 308-317, April.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:3:p:308-317
    DOI: 10.20525/ijrbs.v12i3.2560
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/2560/1786
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v12i3.2560
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v12i3.2560?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:12:y:2023:i:3:p:308-317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.