Open AccessInterest Rate, Inflation and Jakarta Composite Index on Digital Media Based Companies Stock Return in Indonesia
Author(s) -
Muhamad Eko Wahyu Umaryadi,
Hamdana,
Dothy Amelia Saragih,
Haritsah Burhan
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1807/1/012025
Subject(s) - stock exchange , stock (firearms) , econometrics , variables , composite index , interest rate , economics , business , monetary economics , regression analysis , financial economics , statistics , finance , mathematics , engineering , mechanical engineering
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.