DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA
Indonesia has been developing various sectors of its economy, and so it needs a huge amount of capital. Therefore, it has been putting a lot of efforts to develop its capital market. This paper analyzes the impacts of domestic and foreign factors on Indonesia stock price. Some considered domestic fa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Islam Indonesia
2011-09-01
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| Series: | Economic Journal of Emerging Markets |
| Online Access: | https://journal.uii.ac.id/JEP/article/view/2302 |
| _version_ | 1811240610351284224 |
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| author | Rahajeng Cahyaning Putri Cipto Akhsyim Afandi |
| author_facet | Rahajeng Cahyaning Putri Cipto Akhsyim Afandi |
| author_sort | Rahajeng Cahyaning Putri Cipto |
| collection | DOAJ |
| description | Indonesia has been developing various sectors of its economy, and so it needs a huge amount of capital. Therefore, it has been putting a lot of efforts to develop its capital market. This paper analyzes the impacts of domestic and foreign factors on Indonesia stock price. Some considered domestic factors are interest rates, production index, and foreign exchange rates. Various considered foreign factors are Singapore and US stock prices. The paper uses Vector Error Correction Mechanism model to analyze the data. The estimation results suggest that all variables significantly influence Indonesia stock price, with Singapore stock price as the dominant factors.
Keywords: Stock price, interest rates, exchange rates, production index
JEL classification numbers: G12, G15
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| first_indexed | 2024-04-12T13:23:15Z |
| format | Article |
| id | doaj.art-c1eaf70c6e7845e6bf4ee70cbf8aaf13 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-12T13:23:15Z |
| publishDate | 2011-09-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-c1eaf70c6e7845e6bf4ee70cbf8aaf132022-12-22T03:31:24ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2011-09-0122DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIARahajeng Cahyaning Putri CiptoAkhsyim AfandiIndonesia has been developing various sectors of its economy, and so it needs a huge amount of capital. Therefore, it has been putting a lot of efforts to develop its capital market. This paper analyzes the impacts of domestic and foreign factors on Indonesia stock price. Some considered domestic factors are interest rates, production index, and foreign exchange rates. Various considered foreign factors are Singapore and US stock prices. The paper uses Vector Error Correction Mechanism model to analyze the data. The estimation results suggest that all variables significantly influence Indonesia stock price, with Singapore stock price as the dominant factors. Keywords: Stock price, interest rates, exchange rates, production index JEL classification numbers: G12, G15 https://journal.uii.ac.id/JEP/article/view/2302 |
| spellingShingle | Rahajeng Cahyaning Putri Cipto Akhsyim Afandi DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA Economic Journal of Emerging Markets |
| title | DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA |
| title_full | DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA |
| title_fullStr | DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA |
| title_full_unstemmed | DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA |
| title_short | DOMESTIC AND FORIGN FACTORS FOR STOCK PRICES IN INDONESIA |
| title_sort | domestic and forign factors for stock prices in indonesia |
| url | https://journal.uii.ac.id/JEP/article/view/2302 |
| work_keys_str_mv | AT rahajengcahyaningputricipto domesticandforignfactorsforstockpricesinindonesia AT akhsyimafandi domesticandforignfactorsforstockpricesinindonesia |