Effects of Inflation and Exchange Rates on Stock Prices of PT Bank Negara Indonesia (Persero) Tbk
Gunardi (a,b*), Nugraha (b), Maya Sari (b)

a) Komputerisasi Akuntansi, Politeknik Piksi Ganesha, Jalan Gatot Subroto No.301, Kota Bandung 40274, Indonesia
b) Sekolah Pasca Sarjana, Universitas Pendidikan Indonesia, Jalan.Dr. Setiabudi No.299,Kota Bandung 40154, Indonesia

Abstract

The purpose of this research is to examine the effect of macroeconomic factors, namely inflation and the exchange rate on the stock prices of PT Bank Negara Indonesia. This research is based on the study of Kwofie and Ansah which states that most investors do not consider the macroeconomic influence on stock prices. Whereas, previous research showed an influence between macroeconomic factors on stock prices. This study uses inflation and exchange rate data found at Bank Indonesia, while the stock price of PT. Bank Negara Indonesia, which is on the Indonesia Stock Exchange for the period 2009-2019, the data is tested by using multiple regressions using eviews 10. The results showed that inflation and the exchange rate affect the stock prices at PT Bank Negara Indonesia, this indicates that there is adjusting to the theory of Arbitrage Pricing Theory (APT).

Keywords: Inflation; Exchange rate; Stock price.

Topic: Financial Management and Accounting