Universitas Bhayangkara Jakarta Raya

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Andamari, Basis and Widyastuti, Tri and Daito, Apollo (2021) The Impact Of Domestic And Foreign Macroeconomics To Jkse Through Foreign Investor Ownership As Intervening Variable. The Impact Of Domestic And Foreign Macroeconomics To Jkse Through Foreign Investor Ownership As Intervening Variable, 23 (10). 01-08. ISSN 2278-487X

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Abstract

Background: Jakarta Composite Index (JKSE) is the stock index comprised of all stocks traded in the Indonesia Stock Exchange (IDX) that represents Indonesia overall stock market. The long-term trend of JKSE is impacted not only by domestic (Indonesia) but also foreign (international) macroeconomic mainly through foreign investors in IDX. However, the existing researches on JKSE have been done with focus to domestic macroeconomic only while foreign macroeconomics impacts have not been adequately studied. Therefore, this research analyzes the impact of both domestic and foreign macroeconomics to JKSE through foreign investor ownership in IDX as an intervening variable. Its objectives are to find the impacts of main macroeconomic indicators both domestic and foreign to JKSE that can be used as reference for parties concern to IDX particularly investors, listed companies, IDX management and Indonesian government. Methods: The research method applied is quantitative study with causality analysis by using time series data in 1995 – 2019 period. The research data are mainly comprised of the secondary data of domestic and foreign macroeconomics as independent variable, foreign investor ownership in IDX as intervening variable and JKSE as dependent variable. The macroeconomic data consists of 3 main macroeconomic indicators (sub-variables) namely: gross domestic product (GDP) growth, exchange rate and interest rate for Indonesia as domestic and foreign countries having large economy size and/or large portfolio investment in IDX. Foreign investor ownership is used as intervening (intermediate) variable due to the impact of foreign macroeconomics to JKSE is mainly connected through foreign investors in IDX. The direct impact of macroeconomics to foreign investor ownership is analyzed using robust standard error (RSE) method, and then the impact of foreign investor ownership (due to indirect impact of macroeconomics) to JKSE is analyzed by using indirect least square (ILS) method. Results: The research results show that investment in the IDX generates high returns but its risks is also high; the high portion of foreign investor ownership brings positive and negative impacts to IDX; and domestic and foreign macroeconomics have significant impact to JKSE through the ownership of foreign investors as intervening variable. The GDP growth of Indonesia has a positive impact to JKSE but foreign GDP growth has a negative impact. The Indonesian’s Rupiah (IDR) exchange rate has a negative impact to JKSE in the contrary foreign currencies exchange rates have a positive impact. The interest rates both IDR and foreign currencies have a negative impact to JKSE.

Item Type:	Article
Uncontrolled Keywords:	GDP Growth, Exchange Rate, Interest Rate, Foreign Investor Ownership and JKSE
Subjects:	Ilmu Sosial > Ekonomi > Akuntansi
Divisions:	Fakultas Ekonomi dan Bisnis > Akuntansi
Depositing User:	Prof Tri Widyastuti
Date Deposited:	09 Nov 2023 03:39
Last Modified:	09 Nov 2023 03:39
URI:	http://repository.ubharajaya.ac.id/id/eprint/24176

Available Versions of this Item

• Jurnal The Impact Of Domestic And Foreign Macroeconomics To Jkse Through Foreign Investor Ownership As Intervening Variable. (deposited 08 Sep 2023 09:13)
  • The Impact Of Domestic And Foreign Macroeconomics To Jkse Through Foreign Investor Ownership As Intervening Variable. (deposited 09 Nov 2023 03:39) [Currently Displayed]

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