Determinant Factors Effect of the Indonesia’s Banking Sector Share Prices in 2005 QII - 2019 QIV Period
1Sitti Ramlah Masdah,2MA Djirimu,3Haerul Anam, 4AD Tombolotutu,5Yohan Laturama,6Failur Rahman
1,2,3,5,6Department of Economics and Development Studies, Tadulako University, Indonesia
4Panca Bhakti High School of Economics, Indonesia
https://doi.org/10.47191/jefms/v5-i12-40ABSTRACT:
This study aims to determine the effect of interest rates, money supply, inflation, exchange rates, and return on assets (ROA) on stock prices in the banking sector for the 2005 QII – 2019 QIV period. The data used are quarterly time series. The method of analysis used the Vector Error Correction Model (VECM). The result of this study indicate that the interest rates has a negative and insignificant effect on stock prices in the banking sector. However, money supply, inflation and return on assets have a positive effect and significant effect to the stock price of the banking sector in Indonesia.
KEYWORDS:
Money Supply, Inflation, ROA, Exchange Rates, Stock Prices.
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