The Impact of Macro Economy on Stock Price Index: An Empirical Study of Five ASEAN Countries
Journal Title: GATR Global Journal of Business & Social Science Review - Year 2017, Vol 5, Issue 2
Abstract
Objective - The objective of the study is to empirically investigate the relationship between macroeconomic variables as Gross Domestic Product (GDP), inflation, interest rates, exchange rates, foreign exchange reserves, current accounts and export-import towards the stock price index. Methodology/Technique - The data used is monthly data for macroeconomic and the stock price index of five ASEAN countries including Indonesia, Malaysia, Singapore, Thailand and the Philippines from 2006 to 2015. The analysis uses a regression estimation of panel data and a series of chow tests i.e. the Hausman test and the LM test as the selection process, with the aim of determining the macroeconomic variables that could significantly affect the stock price index of five ASEAN countries. Findings - The result show that of the seven macroeconomic variables affecting the stock price index, only four macroeconomic variables showed a significant effect. These are GDP, interest rates, exchange rates, and inflation. Meanwhile, three other variables (foreign exchange reserves, current accounts and export-import) did not show a significant effect. Novelty - The study looked at the effect of deregulation on stock markets, focusing on variables that significantly influence the stock price index.
Authors and Affiliations
Embun Prowanta, Moeljadi . , Sumiati . , Kusuma Ratnawati
Keywords
Related Articles
- EP ID EP184964
- DOI -
- Views 190
- Downloads 0
The Attempt to Improve Mathematics Learning Motivation Using the Geoboard (Spiked Board) Among Grade II Elementary School Students
Objective - The purpose of the research is to increase the motivation of student in SDN Duren Tiga especially for level II on learning mathematics in Geoboard. This research is to reform studying mathematics which has to...
Decentralization and Local Autonomy in South Korea: Lessons for Malaysia
Objective - The purpose of this paper is to outline some experiences faced by South Korea in the transformation towards local election and might as well become as guideline for countries that yet to experience decentrali...
Psychological determinants of online disclosure on Facebook: Differences between Indonesian and Polish users
Objective - The present study was designed to compare online self-disclosure between Polish and Indonesian Facebook users. We expected that Need for Popularity (NfP), Collective Self-Esteem (CSE), perceived network size...
A Review of Political Branding Research
Objective - This study aims to provide a comprehensive review of the political branding literature, to classify research articles according to their areas, categories and methodologies, and to identify the gaps in the li...
Development of Different SMEs Growing Stages Using Configurational Theory
bjective The purpose of article is to study the factors that positively influenced the development of enterprises, named as "success factors", creating model of success factors that affect entrepreneurial process. The ar...