The Impact of Oil Price and Other Macroeconomic Variables on the Islamic and Conventional Stock Index in Indonesia

Antonio, Muhammad Syafii; Rusydiana, Aam Slamet; Soeparno, Wahyu Sugeng Imam; Rani, Lina Nugraha; Pratomo, Wahyu Ario; Nasution, Abdillah Arif

doi:10.32479/ijeep.10911

Cited by 4 publications

(4 citation statements)

References 13 publications

(16 reference statements)

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“…Furthermore, it is important to note that the results of this research support previous studies indicating the positive impact of crude oil prices on the Sharia stock market in Indonesia Indonesia (Bawono & Mutaqin, 2019;Masrizal et al, 2019;Zahrok et al, 2021). However, the literature also reflects divergent opinions, with some studies concluding a negative or insignificant impact of crude oil prices on Sharia stocks (Antonio et al, 2021;Fitrianto, 2020;Mahfudz & Nurhadi, 2021;Mubarok et al, 2020;Nawindra & Wijayanto, 2020;Noval, 2022;Rokhaniyah, 2020). This indicates the complexity of the relationship between crude oil prices and the Sharia stock market, which can be influenced by a number of economic variables and policies.…”

Section: Effect Of Crude Oil Prices On Sharia Stock Marketsupporting

confidence: 79%

“…Specifically in the context of the Sharia Stock Market in Indonesia, previous research provides contradictory results. Antonio et al (2021), Fitrianto (2020), and Rokhaniyah (2020 have concluded that crude oil prices have a negative effect on Islamic stocks in Indonesia. In contrast, Bawono & Mutaqin (2019), Masrizal, Ubaidillah Al Mustofa, &Zahrok et al (2021) concluded that crude oil prices have a positive effect on the Sharia Stock Market in Indonesia.…”

Section: Crude Oil Prices and Sharia Stock Marketmentioning

confidence: 99%

“…Some say that crude oil prices have a positive effect on the sharia stock market in Indonesia (Bawono & Mutaqin, 2019;Masrizal, Ubaidillah Al Mustofa, & Herianingrum, 2019;Zahrok et al, 2021). Some say that crude oil prices have a negative effect (Antonio et al, 2021;Fitrianto, 2020;Rokhaniyah, 2020), and there is also research that says that crude oil prices have no significant effect (Mahfudz & Nurhadi, 2021;Mubarok, Al Arif, & Mufraini, 2020;Nawindra & Wijayanto, 2020). This difference may be caused by moderating variables such as inflation.…”

Section: Introductionmentioning

confidence: 99%

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Examining the Role of Inflation Moderation in Mitigating the Impact of Crude Oil Prices on Indonesia's Sharia Stock Market

Noval,

Nur Syamsu,

Syaakir Sofyan

et al. 2023

Kelaniya J Manage

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This study investigates the impact of crude oil prices on Indonesia's Sharia stock market, considering inflation as a moderating variable to address existing debates in prior research. Utilizing data from June 2011 to December 2021, including the Indonesian Sharia Stock Index (ISSI), World Texas Intermediate (WTI), and inflation, the study employs Moderated Regression Analysis (MRA) to uncover significant positive correlations between crude oil prices and the Sharia stock market. The findings highlight the moderating role of inflation, indicating that the market weakens when crude oil prices rise alongside inflation and strengthens in the absence of inflationary pressures. Practical implications suggest portfolio diversification for investors to manage associated risks. The study contributes theoretically by introducing additional moderator variables and offers empirical insights, yet acknowledges limitations, advocating for further research to deepen the understanding of the complex relationship between crude oil prices, inflation, and the Sharia Stock Market in Indonesia.

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Section: Effect Of Crude Oil Prices On Sharia Stock Marketsupporting

confidence: 79%

Section: Crude Oil Prices and Sharia Stock Marketmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Examining the Role of Inflation Moderation in Mitigating the Impact of Crude Oil Prices on Indonesia's Sharia Stock Market

Noval,

Nur Syamsu,

Syaakir Sofyan

et al. 2023

Kelaniya J Manage

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“…10 In economy activity, there is a system of economy that can be the answer and solution of the conventional economy failure that is capitalist and socialist economy. 11 The failed of those two systems of economy in creating society wellbeing, requires a problem solving. Because of that, people need a system which is better to give all element roles in reaching well-being and happiness of human being.…”

Section: A Introductionmentioning

confidence: 99%

Implementation of Sharia Economic Principles in the Globalization Era

Rahmani,

Rozi,

Fitriyanti

et al. 2023

Asy

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The globalitation era is an era that requires people to quickly adapt to the times that are increasingly advancing rapidly. Because if it is not adaptive it will be a human being left behind. While the era of globalization demands a tight contestation. Especially in the economic sector. Every global company has its own strategy in marketing its business. They don't think about the fate of their competitors. That's because they think that other companies are tough competitors. So that their competition prioritizes individual (company) profits and stops other companies that have the same business product. Of course, this global business competition is contrary to the principles of Islamic economics. Which, the principles of Islamic economics are not solely seeking individual gain. But also think about mutual benefits. Therefore, there are at least three Islamic economic principles that must exist even in the midst of global business competition, namely multiple ownership, freedom to act, and social justice. These three basic principles of Islamic economics must still exist in economic behavior and remain relevant even in the midst of global economic contestation.

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Analysis of key influencing factors on the financial performance of Jakarta Islamic Index 30 industrial firms

Kismawadi

2024

JIABR

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Purpose The purpose of this paper is to investigate the impact of size, asset quality, asset management, financial risk, gross domestic product and inflation rate on the financial performance of companies listed on the Jakarta Islamic Index of 30 industrial firms. Design/methodology/approach Based on the selected criteria, this study analysed an unbalanced panel of data from 30 industrial companies on the Indonesian capital market that are members of the Jakarta Islamic index. Profitability is measured using the dependent variables return on assets (ROA), return on equity (ROE) and stock prices. The influence of explanatory variables of internal factors, namely, size, asset quality, asset management, financial risk, gross domestic product and inflation is investigated using pooled OLS, fixed and random effect estimation. Findings The empirical findings indicate that the scale of a company has a significant impact on its performance, asset quality, asset management and financial risk. GDP has a substantial impact on financial performance, particularly as measured by ROA and ROE. This study’s ramifications have substantial effects on a broad spectrum of stakeholders. The results of this study provide the general public and investors with a greater understanding of the factors that influence a company’s performance on the Jakarta Islamic Index 30. Research limitations/implications The implication of this research is that a deeper comprehension of the factors that influence the financial performance of companies within industrial sectors that follow Islamic finance principles can help design more effective strategies and policies. Practical implications This research has significant practical implications in a number of crucial areas. First, it provides a comprehensive comprehension of the company’s financial performance in the industrial sector in accordance with Islamic finance principles. Second, the research findings provide more precise guidance on how company size, asset quality and macroeconomic variables influence the performance of Indonesia's financial market. Originality/value The study’s authenticity and value hold considerable importance. This study introduces novel perspectives on the assessment of corporate financial performance within industrial sectors through the lens of Islamic finance principles. It offers valuable insights that have not yet been extensively investigated by scholars in the field.

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The Impact of Oil Price and Other Macroeconomic Variables on the Islamic and Conventional Stock Index in Indonesia

Cited by 4 publications

References 13 publications

Examining the Role of Inflation Moderation in Mitigating the Impact of Crude Oil Prices on Indonesia's Sharia Stock Market

Examining the Role of Inflation Moderation in Mitigating the Impact of Crude Oil Prices on Indonesia's Sharia Stock Market

Implementation of Sharia Economic Principles in the Globalization Era

Analysis of key influencing factors on the financial performance of Jakarta Islamic Index 30 industrial firms

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