THE EFFECT OF INFLATION, BANK INDONESIA INTEREST RATES, AND RUPIAH EXCHANGE RATES ON STOCK RETURNS

Authors

  • Nada Shaufika Nadila Fakultas Ekonomi, Institut Bisnis dan Informatika Kosgoro 1957
  • Indra Setiawan Fakultas Ekonomi, Institut Bisnis dan Informatika Kosgoro 1957
  • Rizky Bagus Sumantri Fakultas Ekonomi, Institut Bisnis dan Informatika Kosgoro 1957
  • Zara Tania Rahmadi Fakultas Ekonomi, Institut Bisnis dan Informatika Kosgoro 1957

Keywords:

Inflation rate, SBI interest rate, rupiah exchange rate, stock return

Abstract

The objective of this research is to assess the influence of inflation rate, Bank Indonesia's interest rate (SBI), and the exchange rate of the Indonesian rupiah on the returns of stocks. The research focuses on manufacturing companies that are listed on the Indonesia Stock Exchange (IDX) LQ45 Index during the timeframe of 2012 to 2021. A purposive sampling method was employed, and the sample size consisted of 7 companies. In this study, the data underwent multiple linear regression analysis using SPSS version 26. The findings indicate that the inflation rate does not significantly impact stock returns in a negative manner, while SBI interest rates do not have a significant positive effect on stock returns. Conversely, the exchange rate of the Indonesian rupiah has a significant negative influence on stock returns. Additionally, it was found that the inflation rate, SBI interest rate, and rupiah exchange rate collectively have a significant positive impact on stock returns.

Published

2024-03-06

Issue

Vol. 11 (2024): How Do Accountants Contribute to Environmental Sustainability by Leveraging Artificial Intelligence?

Section

Articles
Abstract views: 23