The Impact of Microeconomic Variables on Stock Return by Moderating of Money Supply

This research investigated the influence of the company's fundamental factors on stakeholder wealth with good mining governance (GMG) as a moderating and control variable. It also evaluated the Growth, Investment Opportunity Set (IOS), and COVID-19 in the mining sector listed on the Indonesia Stock Exchange from 2016 to 2020. The fundamental factors consist of profitability (PRO), Efficiency (TATO), Liquidity (CR), and Solvency (DER). The object of this research is the mining sector companies listed on the Indonesia Stock Exchange which publish financial statements from 2016 to 2020 obtained using the purposive sampling method. The number of samples is 41 companies with a total of 205 observations. Furthermore, panel data was conducted using an analysis tool of view 10. The results showed that efficiency has a significant positive influence on Stakeholder Wealth. Meanwhile, Profitability, Liquidity, and Solvency have a significant negative influence. The good Mining Governance (GMG) variable as a moderator is proven to strengthen the influence of profitability, liquidity, and solvency on Stakeholder Wealth, excluding efficiency.

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“…Furthermore, [62] stated that an investor's decision to sell or buy a capital market share is based on the information obtained.…”

Section: Solvency (Sol) Efficiency (Eff) Profitability (Pro) Moderati...mentioning

confidence: 99%

The Influence of Fundamental Factors on Stakeholders' Wealth with Good Mining as A Moderation of Mining Sector in Indonesia

Sukiranto

Murwaningsari²,

Gunawan³

2022

TSSJ

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“…Even so, empirical findings for developing economic cases are still a puzzle. Therefore, changes in stock prices are influenced by changes in macroeconomic performance in well-developed markets, but the results are not convincing for developing countries markets (Sayedy & Ghazali, 2017;Rahman et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

Changes in Macroeconomic conditions and capital Return in Indonesia

Selvi

Adam

Suhel

2020

Mod. innov. razvit.

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Purpose: this study aims to examine the influence of changes in inflation, changes in the rupiah exchange rate, changes in the money supply, changes in SBIS, changes in foreign exchange reserves and changes in interest rates on the return of Indonesian Islamic stocks.Methods: this study is focused on looking at conditions of macroeconomic changes that have an impact on the activity of the Islamic capital market, particularly on the return of Islamic stocks listed in the Jakarta Islamic Index. This empirical evidence is related to variable macroeconomic changes, namely changes in inflation, rupiah exchange rate, money supply, foreign exchange reserves, Indonesian Syariah Bank Certificates (SBIS) and interest rates on sharia stock returns for the period January 2014 – December 2019 obtained from Financial publications. Service Authority (OJK) and Bank Indonesia. The analysis technique used is quantitative analysis using multiple regression analysis tools.Results: the results of this study are (1) Variable Changes in Inflation, Changes in the Amount of Money Supply, Changes in Foreign Exchange Reserves, Changes in SBIS have a positive and significant effect on Stock Returns listed on the Jakarta Islamic Index, (2) changes in exchange rates have a negative and significant effect on Stock Returns listed in Jakarta Islamic. Index, (3) the Interest Rate variable has no effect on Stock Returns listed on the Jakarta Islamic Index.Conclusions and Relevance: the approach used by each variable starts with the conventional followed by the study of Islamic macroeconomics, in order to provide a philosophy of science and economics that refers to Baqir Sadr in the Iqtishaduna book. In this study, researchers examined macroeconomic variables on sharia stock returns to prioritize people's welfare and pay close attention to every investment process based on sharia principles. Therefore the public, entrepreneurs, investors and company performance must pay attention to information regarding changes in inflation, changes in the rupiah exchange rate, changes in the money supply, changes in Bank Indonesia Sharia Certificates (SBIS), changes foreign exchange reserves, and changes in interest rates in order to minimize risks for both investors and entrepreneurs. This variable can affect the movement of the capital market so that the return on Islamic stocks also has an effect.

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“…The stock market is a volatile environment with dramatic moves that can either give investors a positive or negative stock market return. Stock prices change every day by market forces and when more people want to buy a stock (demand) than sell it (supply), then the price moves up (Kirui, Wawire, & Onono, 2014;Sayedy & Ghazali 2017;Sichoongwe, 2016;Aroni, Namusonge, & Sakwa 2014). Conversely, if more people wanted to sell a stock than buy it, there would be more supply than demand, and the cost would fall.…”

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confidence: 99%

The Role of Accruals Anomaly on Stock Market Return of Non-Financial Firms Listed on the Nairobi Securities Exchange

Nabosu

M’ithiria

2022

JOFA

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The accrual anomaly arises due to the market mispricing of the total accruals and their components and the investors fail to incorporate the differential persistence of the cash flow components and accruals of firm earnings. This study sought to determine the effect of accruals anomaly on stock market return of non-financial firms listed on the Nairobi Securities Exchange. The study adopted positivism as data collection and hypothesis development and testing was achieved. The study used quantitative research design to correlate study variables using mathematical analysis methods. Correlation results indicate that accrual anomaly was negatively and significantly associated to stock market return of non-financial firms. Regression results for the static model indicate that accrual anomaly and stock market return of non-financial firms is negatively and significantly related. The results for the dynamic model indicate that accrual anomaly and stock market return is negatively and significantly related. The study concluded that accruals anomaly has a negative and significant effect on stock market return in non-financial firms on the Nairobi Securities Exchange. The analysis concluded that the accrual anomaly has implications because firms with high reported accruals exhibit lower stock market returns. High valuations of the investors are related to accruals because of the accounting distortions. The study recommends that having knowledge regarding accrual toward stock return in the future will help the investors to minimize the earning prediction error so that investors can make appropriate decision making. The study recommends for the investors to implement the investment strategy, which to short (sell) low accrual stocks and long (buy) high accrual stocks in Nairobi Securities Exchange with prediction that the stock gains higher return in the future based on the prevailing investor projections. Keywords: Accruals Anomaly, Stock Market Return & Non-Financial Firms Listed

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The Impact of Microeconomic Variables on Stock Return by Moderating of Money Supply

Cited by 5 publications

References 39 publications

The Influence of Fundamental Factors on Stakeholders' Wealth with Good Mining as A Moderation of Mining Sector in Indonesia

The Influence of Fundamental Factors on Stakeholders' Wealth with Good Mining as A Moderation of Mining Sector in Indonesia

Changes in Macroeconomic conditions and capital Return in Indonesia

The Role of Accruals Anomaly on Stock Market Return of Non-Financial Firms Listed on the Nairobi Securities Exchange

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