Macroeconomic Variables and Stock Market Returns in Sri Lanka

Balagobei, Saseela

doi:10.5296/ajfa.v9i2.11832

Cited by 8 publications

(8 citation statements)

References 7 publications

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“…Ho (2017) analysed SMP in Malaysia and found that inflation has an inverse effect, and Lee and Brahmasrene (2018) indicated that an inverse effect of inflation rate in short term in Korea. Few studies found that inflation and share price are positively associated in Sri Lanka (Chang & Rajput, 2018;Hemamala & Jameel, 2016;Shafana, 2014;Balagobei, 2017). Controversy few studies found that INF has no significant relationship with market return (Perera, 2015;Wickramasinghe, 2011 andLakmali &Madhusanka, 2015).…”

Section: Inflationmentioning

confidence: 99%

Impact of Macroeconomic Variables on Stock Market Performance: Evidence from Sri Lanka

Balagobei

Bandara

2022

Wayamba J Mgt

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The aim of the paper is to explore the influence of macroeconomic variables on stock market performance in Sri Lanka. The proxy for the stock market performance is all share price index (ASPI) whereas Gross domestic product (GDP), inflation rate, interest rate, exchange rate and money supply are considered as macroeconomic variables. The population of the study consists of all companies listed in Colombo Stock Exchange. The data was gathered from the secondary sources and the annual time series data was employed from 1995 to 2019. The techniques of Pearson's correlation and multiple regressions were employed for the data analysis and hypothesis testing. Furthermore, Variance inflation factor (VIF) for Multicollinearity, Augmented Dicky-Fuller (ADF) test and Breusch-Pagan-Godfrey test were used. The findings demonstrate that GDP and money supply positively influence the stock market performance. Interest rate and exchange rate negatively influence the stock market performance while inflation rate has failed to prove the significant impact on stock market performance. The study will support to investors, academics and researchers in the fields of economics and finance in understanding how macroeconomic variables affect the stock market performance. It also provides insight into society and researchers since it integrates a number of macroeconomic variables and their interaction with the stock market.

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Section: Inflationmentioning

confidence: 99%

Impact of Macroeconomic Variables on Stock Market Performance: Evidence from Sri Lanka

Balagobei

Bandara

2022

Wayamba J Mgt

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“…Berdasarkan rumusan masalah yang ada dalam penelitian ini, maka dari sini dapat disimpulkan tujuan dari penelitian ini, yakni: a. Untuk mengerti apakah tingkat suku bunga memiliki efek dengan harga saham yang terdaftar di dalam Indeks LQ45. 2017), Haque & Sarwar (2012), Linck & Decourt (2016), Oshaibat (2017), Ghosh et al (2018), Sutrisno (2017), Balagobei (2017), Barakat et al (2015), Iqmal & Putra (2020), Tangjitprom (2012), membuktikan suku bunga dan return indeks saham memiliki ikatan yang bersifat negatif yang signifikan. Ketika suku bunga naik, investor dapat mengalokasikan uang mereka untuk investasi sekuritas.…”

Section: Tujuan Penelitianunclassified

Analisis Pengaruh Interest Rate, Exchange Rate, Inflation, Covid-19 Terhadap Lq-45

Hu¹,

Hesniati²,

Ping³

et al. 2022

Jur.Ilm.Kom.Bis

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Tujuan dari penelitian ini adalah untuk mengetahui dan menganalisis apakah tingkat suku bunga, nilai tukar, inflasi dan COVID-19 berpengaruh terhadap harga saham perusahaan yang terdaftar di indeks saham LQ45 yang terdaftar di Bursa Efek Indonesia. Data yang digunakan dalam penelitian ini adalah data sekunder. Populasi yang digunakan dalam penelitian ini adalah seluruh perusahaan yang termasuk dalam indeks LQ45 yaitu 45 perusahaan dari sektor lain, dan sampel untuk penelitian ini diambil secara intensional sampling. Metode analisis yang digunakan dalam penelitian ini adalah metode statistik deskriptif dan uji asumsi klasik. Kesimpulan dari penelitian ini adalah efek negatif dari tingkat suku bunga yang meningkat dapat membuat investor enggan untuk mengalokasikan dananya pada Indeks Saham LQ45. Sedangkan kenaikan nilai tukar mata uang asing dan peningkatan inflasi mempengaruhi saham di Indeks LQ45 menjadi menarik bagi investor. Dan tingkat wabah COVID-19 yang meningkat memiliki pengaruh negatif terhadap Saham Indeks LQ45.

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“…Sedangkan Malaysia mengalami penurunan dan kenaikan inflasi dan pada Negara Arab Saudi sempat terjadi deflasi pada tahun 2017 akan tetapi mengalami inflasi pada tahun 2018 dan Bangladesh relative memiliki inflasi pada angka 6 persen. Dari gambar 3 ini (Balagobei, 2017) dan (Laichena dan Obwogi, 2015) yang mengatakan suku bunga memiliki pengaruh positif terhadap harga saham.…”

Section: Diskusiunclassified

Pengaruh Variabel Makroekonomi Terhadap Index Harga Saham Syariah

Annisa.M.Zaimsyah

2020

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The purpose of this paper to investigate macroeconomic indicators affects sharia stock prices in Asia Muslim majority countries. This research used inflation, interest rates and exchange rate in Indonesia, Malaysia, Saudi Arabia and Bangladesh. This research use data panels and multiple linear regression analyses using Ordinary Least Square (OLS) method as parameter. The results shows inflation and exchange rates have no effect in sharia stock prices, while interest rates have negative effect. Implications for investors who want to invest in stocks to attention macroeconomic variables that affect movement of stock price, information that related macroeconomic conditions, information that predict fluctuation stock price. This study has limitations only focus in four countries in Asia and only use three most dominant macro variables. Future research can improved other macroeconomic variables such world oil prices and gross domestic income. Novelty of this research examines the Sharia stock market in Muslim majority countries in Asia.

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Macroeconomic Variables and Stock Market Returns in Sri Lanka

Abstract: The stock market is one of the most energetic sectors that play an important role in contributing to the wealth of the economy. It plays a crucial role in the economic growth and development of an economy which would benefit industries, trade and commerce as a whole.

Cited by 8 publications

References 7 publications

Impact of Macroeconomic Variables on Stock Market Performance: Evidence from Sri Lanka

Impact of Macroeconomic Variables on Stock Market Performance: Evidence from Sri Lanka

Analisis Pengaruh Interest Rate, Exchange Rate, Inflation, Covid-19 Terhadap Lq-45

Pengaruh Variabel Makroekonomi Terhadap Index Harga Saham Syariah

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