The Effect of Macro Economics on Indeks Harga Saham Gabungan (IHSG) in Indonesia Stock Exchange (IDX) Period 2007-2016

Abstract

Macroeconomics changes in Indonesia will affect the Indonesian economy and all existing industries. The capital market becomes a driver of the national economy through its role as a source of corporate finance and an alternative for investors to invest. In the capital market, the Indeks Harga Saham Gabungan (IHSG) plays an important role because this index can be a barometer of economic health in a country. The high inflation, interest rates and depreciation of the rupiah against the dollar will reduce share prices. This study aims to see the effect of macroeconomic factors, namely inflation, exchange rates and interest rates on the Indeks Harga Saham Gabungan (IHSG) on the Indonesia Stock Exchange (IDX). The analysis method uses multiple linear analysis models. The data used in this study are monthly data for the period January 2007-December 2016. This study uses a sample of 100 samples. The results it is concluded that the inflation variable has a positive and significant effect on the Indeks Harga Saham Gabungan (IHSG). The exchange rate variable has a positive and significant effect on the Indeks Harga Saham Gabungan (IHSG). The interest rate variable has a negative and significant effect on the Indeks Harga Saham Gabungan (IHSG). Simultaneously the independent variables, namely inflation, exchange rates and interest rates have a significant influence on the Indeks Harga Saham Gabungan (IHSG)

The Effect of Macro Economics on Indeks Harga Saham Gabungan (IHSG) in Indonesia Stock Exchange (IDX)

Period 2007-2016