The Influence Of Inflation On Stock Price
Abstract
This research has an objective to examine the Influence of Inflation on stock
price in Indonesia, whether it is negative, positive orflat, in relation to the following
macroeconomic variables: interest rate, money growth, oil price, gross domestic
product, financial deregulation, and financial deficits. The research selects the
populations and samples based on the purposive sampling. The test conducted by
using a regression with stock price as a dependent variable, inflation as an
independent variable, and interest rate, money growth, oil price, gross domestic
product, financial deregulation, and financial deficits as control variables that is also
included as independent variables.
The results support the hypothesis that inflation has a negative effect onstock
price. However, the control variables result is not consistent with the prediction.
Although the control variables are notconsistent, they do not disturb the researcher's
examination since it is not what the researcher focus on. An important implication of
these findings is that since most of the factors unrelated to market fundamental are
found to exert insignificant effect on stock prices, the Indonesian stock market canbe
described likely to be an efficient.
Collections
- Management [4534]