Determinants of Indonesian Capital Market Reaction
Author:
Riyani Yani1, Mardiah Kartawati1, Mahyus Mahyus1, Kusmana Endang1, Andriana Susan1, Nengzih Nengzih2, Soepriyadi Irzan3, Endri Endri2
Affiliation:
1. Accounting Department, Politeknik Negeri Pontianak, Jl. Jenderal Ahmad Yani, Bansir Laut, Kota Pontianak, Kalimantan Barat 78124, INDONESIA 2. Faculty of Economics and Business, Universitas Mercu Buana, Jl. Meruya Selatan No.1, Kembangan, Jakarta Barat 11650, INDONESIA 3. Institut Bisnis Dan Informatika Kosgoro 1957, Jl. Moch. Kahfi II No.33, Srengseng Sawah, Jakarta Selatan 13550, INDONESIA
Abstract
Several research results in the Indonesian Capital Market have found a market anomaly phenomenon caused by the market reacting to internal and external information. This study aims to examine whether companyspecific factors (company size, growth, and risk), national macroeconomic factors (Inflation, interest rates, and exchange rates on a national scale), and world macroeconomic factors (market returns, Inflation, interest rates, and world-scale exchange rates) ) may cause the Indonesian Capital Market to react. The form of this research is associative descriptive with a population of all companies indexed by LQ45, totaling 45 companies. According to purposive sampling, the sample used is 22 companies, and data analysis using panel data regression with the help of software Eviews 12. The study's results found that only national interest rates and world inflation could cause the Indonesian Capital Market to react. In contrast, size, growth, risk, national Inflation, world returns, world interest rates, and world exchange rates did not cause the Indonesian Capital Market to react.
Publisher
World Scientific and Engineering Academy and Society (WSEAS)
Subject
Computer Science Applications,Control and Systems Engineering
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