The Influence of Macroeconomic Variables on Indonesia’s Non-cyclical Sector Stock Price Index Post-COVID-19 Pandemic

Syarifudin Putra Alwindaru, Afina Latifah, Aldenia Luthfian Ilma, Rusdi Hidayat Nugroho and Lidya Veronica Christy Rihidima
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Syarifudin Putra Alwindaru: University of Pembangunan Nasional Veteran Jawa Timur, Indonesia
Afina Latifah: University of Pembangunan Nasional Veteran Jawa Timur, Indonesia
Aldenia Luthfian Ilma: University of Pembangunan Nasional Veteran Jawa Timur, Indonesia
Rusdi Hidayat Nugroho: University of Pembangunan Nasional Veteran Jawa Timur, Indonesia
Lidya Veronica Christy Rihidima: University of Pembangunan Nasional Veteran Jawa Timur, Indonesia

Journal of Accounting, Finance, Economics, and Social Sciences, 2024, vol. 9, issue 2, 47-56

Abstract: Purpose: This study aims to analyze the effect of macroeconomic variables, namely the exchange rate, inflation, Real Sales Index (RSI), and M2, on Indonesia's non-cyclical sector stock price index after the COVID-19 pandemic. Methodology: The study uses multiple linear regression to evaluate the partial and simultaneous effects of the study's selected variables on Indonesia's non-cyclical sector stock price index. Findings: The results show that the exchange rate, inflation, and RSI partially do not have a significant impact, but the M2 broad money supply variable has a significant effect on the stock price index of the non-cyclical sector. These four variables simultaneously significantly influence the non-cyclical sector's stock price index. Implications: The findings indicate that although some of the macroeconomic independent variables' influence on the stock price index of the non-cyclical sector tends to be weak, these variables together influence the movement of the stock price index. Originality: The study provides insights for investors and policymakers on the importance of considering macroeconomic dynamics in managing portfolios and maintaining the stability of the non-cyclical sector. Limitations and directions for future research: The study focuses only on the non-cyclical sector specific to a country, and the data is limited to the post-COVID-19 pandemic, from June 2023 to August 2024. Future research could explore incorporating additional relevant variables and broadening the scope to include a more diverse range of sectors and regions.

Keywords: Exchange rate; Inflation; Real Sales Index; M2 broad money supply; Non-cyclical sector (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:euj:jafess:v:9:y:2024:i:2:id:77

DOI: 10.62458/jafess924

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