Effect of Rupiah Exchange Rate, GDP Growth, and Dow Jones Index on Composite Stock Price Index in Indonesia Stock Exchange

Abstract


 A capital market is a meeting place for stock sellers and buyers with the aim of getting maximum profits. To get these benefits, investors need information about the stock price index. Factors that influence the Stock Price Index are important information for investors. The composite stock price index (CSPI) is one of the main indicators that reflects the performance of the capital market whether it is experiencing an increase or is experiencing a decline. These factors include the rupiah exchange rate, GDP growth, and the Dow Jones index. This study aims to prove and analyze the effect of the rupiah exchange rate, GDP growth, and the Dow Jones index Average (DJIA) on the composite stock price index on the Indonesia stock exchange for the period 2012-2015. The population and sample of this study are forty-eight CSPI data from the Indonesia Stock Exchange. Data is collected by means of documentation and then analyzed. The data analysis technique used in this study is multiple linear regression analysis techniques. Based on the results of the analysis it is known that the rupiah exchange rate has no effect on the Composite Stock Price Index (CSPI). While GDP growth and the Dow Jones index Average (DJIA) have affected the Composite Stock Price Index (CSPI). For further research, it is considered necessary to review other factors that can influence the movement of the stock price index, for example, the company's fundamental factors such as profit, loss, financial ratios, and others. 
 Keywords: Exchange Rate, GDP Growth, The Dow Jones (DJIA), Composite Stock Price Index (CSPI).

The Effect of World Gold Price, World Oil Price, USD/IDR Exchange Rate, and Inflation on the Joint Stock Price Index (JCI) On the Indonesia Stock Exchange (IDX)

“…And when the world gold price drops, many investors will sell their gold and switch to stocks so that the JCI will increase. This study is in accordance with another research conducted by Sartika (2017) and Oktavia, which shows the world gold price has a negative effect on the JCI (Oktavia et al, 2018;Sartika, 2017). However, this result is not in line with research that conducted by Haryanto & Astuti (2021), Anggriana (2020), andBasit (2019), which stated that there is no effect of the world gold price on the Composite Stock Price Index (Anggriana & Paramita, 2020;Basit, 2020;Haryanto & Astuti, 2021).…”

“…Because stock trading on the IDX tends to be dominated by stock trading in the mining area, the price increase of these mining stocks will eventually trigger an increase in the JCI. This state is in line with research results conducted by Beureukat & Andriani (2021), Novianti &Perwati (2020), andOktavia et al, (2018) which also shows that world oil prices partially have a significant and positive effect on the JCI (Beureukat & Andriyani, 2021;Novianti & Perwati, 2019;Oktavia et al, 2018). However, this is not the same with research conducted by Anggriana & Paramita (2020), Dewi, Sartika (2017), Fuad & Yuliadi (2021), and Hersugondo, which states that world oil prices do not have any effect on the Jakarta Composite Index (JCI) (Anggriana & Paramita, 2020;Dewi, 2020;Fuad & Yuliadi, 2021;Hersugondo et al, 2019;Sartika, 2017).…”

“…Research by Haryanto & Astuti (2021), Nurwulandari (2020), Dewi (2020), Fuad & Yuliadi, Robiyanto, and Oktavia shows that the USD/IDR exchange rate has a bad influence on the JCI. However, the research conducted by Masriyani and Sartika stated that the USD/IDR exchange rate not had any effect on the JCI (Dewi, 2020;Fuad & Yuliadi, 2021;Handayani & Oktavia, 2018;Haryanto & Astuti, 2021;Masriyani et al, 2021;Nurwulandari, 2021;Sartika, 2017).…”

“…The increase and decrease in profit have an impact on the stock price of the company, which will ultimately affect the JCI value (Sartika, 2017). The results of research conducted by Beureukat & Andriani (2021), Novianti &Perwati (2020), andOktavia et al (2018) show that world oil prices have a good and necessary effect on the JCI (Beureukat & Andriyani, 2021;Handayani & Oktavia, 2018;Novianti & Perwati, 2019). Meanwhile, according to Anggriana & Paramita (2020), Dewi (2020), Sartika (2017), Fuad &Yuliadi (2021), andHersugondo et al, (2019), world oil prices have no influence on the JCI (Anggriana & Paramita, 2020;Dewi, 2020;Faud & Yuliadi, 2021;Hersugondo et al, 2019;Sartika, 2017).…”

IPO Under-pricing Phenomenon Approach: Does Covid-19 Has a Negative Sectoral Impact?

“…Information asymmetry models based on the asymmetric information problem between issuing firms and underwriters, investors and underwriters, issuers and investors, and informed and uninformed investors; institutional explanations for IPO under-pricing has inspired the emergence of three dominant institutionalbased theories, including lawsuit avoidance, price stabilization, and tax advantages hypotheses; ownership and control theories contend that IPO under-pricing works as an effective mechanism in shaping the shareholder base to deter outside investors from intervening in managing their firms once they are publicly listed; and the last theory was the presence of informational cascades as a behavioural explanation, which is discussed where the central argument is that the IPO market is prone to the presence of "irrational" investors who bid up the price of IPO shares beyond their true value (Jamaani & Alidarous, 2019). Several previous studies related to phenomena under-pricing is according to (Akseptori et al, 2019) concluded that internal factors (Debt To Equity Ratio (DER), Earning Per Share (EPS), Return On Assets (ROA), Company Age (AGE), Company Size (SIZE), Percentage of Shares Offered (PSD) has a significant effect on under-pricing and stock performance, while external factors (Inflation (INF), Exchange Rate (KURS), Bank Indonesia Interest Rates (RATE) have no significant effect on under-pricing and stock performance in companies conducting IPOs in the Indonesia Stock Exchange in the infrastructure, utility, and transportation sector in 2010-2018, which in line with (Oktavia & Handayani, 2018) that the rupiah exchange rate does not affect the Composite Stock Price Index (CSPI). Yusniar, (2016) shows that the performance of shares in companies that conducted IPOs in 2010 -2012 for the short and long term is significantly different.…”