The Effect of Macroeconomy on Stock Performance of LQ45 Companies at IDX

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Gunarto, Angelica Giovanni (2019) The Effect of Macroeconomy on Stock Performance of LQ45 Companies at IDX. Undergraduate thesis, Sekolah Tinggi Manajemen IPMI.

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Abstract

An economy's performance can be measured by the real GDP growth rate, interest rate, inflation rate, exchange rate, and many other variables, which can also serve as the major economic growth determinants since it would have a significant impact in determining the returns of securities. These macroeconomic variables influence the performance of a firm. It is imperative that firms are aware of these elements in order to lessen the effect on future cash flows and profitability. This study examines the effect of changes in currency exchange rate of IDR versus USD, GDP growth rate, inflation rate, and interest rate on the stock performance of LQ45 companies at IDX from 2008-2018. In order to have a reliable result, these data undergone several tests, which are descriptive statistics, normality test, autocorellation test, multicollinearity test, regression, F-test, and Ttest. The result of this study showed that the currency exchange rate of IDR versus USD, GDP growth rate, and inflation rate are significantly affects stock performance and has negative coefficient. Whereas inflation rate is insignificant in explaining the stock performance. In general, macroeconomic variables are found to have a strong relation with stock market. This means that macroeconomic variables can be used to explain fluctuation in the stock return of LQ45 index. Keywords: Exchange Rate, GDP Growth Rate, Inflation Rate, Interest Rate, Stock Performance

Item Type: Thesis (Undergraduate)
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Thesis > Bachelor of Business Administration
Depositing User: Hasna Salsabila
Date Deposited: 16 Jan 2020 09:12
Last Modified: 17 Jan 2020 03:21
URI: http://repository.ipmi.ac.id/id/eprint/268

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