Journal of Management and Business Innovations
Volume: 03, Number: 01, 2021

Influence of BI Rate, FED Rate, and Inflation on Composite Stock Price Index (JCI)

Mohammad Yusuf (Universitas Pembangunan Pancabudi Medan)
Reza Nurul Ichsan (Universitas Pembinaan Masyarakat Indonesia)
Sudirman Suparmin (Universitas Islam Negeri Sumatera Utara)



Article Info

Publish Date
30 Jun 2021

Abstract

This study aims to explain the impact of BI Rate, FED Rate, and Inflation simultaneously, partially, and potentially dominant variable influence on the Composite Stock Price Index by conducting a multiple linear regression analysis. The data is collected monthly from January 2013 to December 2020 with 96-time series data for each free and bound variable. The analysis shows that BI Rate, FED Rate, and Inflation simultaneously significantly affect the Composite Stock Price Index. As the analysis results describe, BI Rate partially negatively influences the Composite Stock Price Index; second, the FED Rate does not affect the Composite Stock Price Index; third, inflation represents a negative influence on the Composite Stock Price Index. In the end, variables that affect the dominant potential of the Composite Stock Price Index are the Rupiah Exchange Rate variables. The results in this study explain the diversity of news on changes in the FED Rate so that investors are confident in their self-assessment to provide results in investing in stocks.Keywords: BI rate, composite stock price index, FED rate, inflation

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Journal Info

Abbrev

jombi

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Management and Business Innovations (JOMBI) is an online peer-reviewed International research journal aiming at promoting and publishing original high quality research in all disciplines of management and business. JOMBI is a journal that published by the Department of Management, Faculty ...