Interest Rate, Inflation and Jakarta Composite Index on Digital Media Based Companies Stock Return in Indonesia

Abstract

In this paper, we found the evidence of the effect of interest rates, inflation and Jakarta Composite Index on stock returns of digital-based mass media companies listed on the Indonesia Stock Exchange. Objects have taken as a sample of 5 digital-based mass media companies listed on the Indonesia Stock Exchange with a research period from July 2014 to June 2019. These objects are MNCN, ABBA, SCMA, LPLI, and TMPO. Samples were taken by a purposive method with the criteria of companies that have been registered before the study period and have a balanced company size. The analytical method used is path analysis with multiple linear regression models. Research data shows that MNCN, SCMA and LPLI stock prices tend to weaken, while ABBA and TMPO stock prices tend to strengthen from July 2014 to June 2019. The analysis results showed that the interest rate variable (X1) had a negative and significant effect on stock returns (Y1). The inflation variable (X2) had a positive and not significant effect on stock returns (Y1), the IHSG variable (X3) had a positive and significant effect on stock returns (Y1). Therefore, investors need to look at JCI’s movements to optimize the return of stock digital media-based companies.

Analisis Pengaruh Interest Rate, Inflation dan Exchange Rate Rupiah terhadap IHSG di Indonesia

“…Inflasi yang terjadi dalam sebuah negara dapat terjadi akibat ketidakseimbangan penawaran dan surplus permintaan atas produk di negara sehingga harga relatif mengalami kenaikan (Yuliani et al, 2020). Inflasi yang terlalu tinggi yang terjadi dalam suatu negara dapat menyebabkan masyarakat enggan membeli mata uang dari negara tersebut karena investasi yang dilakukan investor tergolong rugi dikarenakan penyusutan nilai mata uang (Wahyu Umaryadi et al, 2021). Akan tetapi, berbeda dengan hasil penelitian dari Aryani dan Maupula (2021) menyatakan berdasarkan hasil peneloitiannya mengenai suku bunga menunjukkan efek signifikan positif terhadap IHSG.…”

Stock Returns and Inflation: a Bibliometric Analysis

“…Thus, it shows the nexus between stock market returns and inflation is variable based on the economic situation. Umaryadi et al (2021) documented a positive but insignificant relationship between inflation and stock returns. Bassar et al (2021) failed to find any significant effects of inflation on Shariah stock returns, thus suggesting that Shariah stocks can be considered a viable hedging instrument in times of high inflation.…”