Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)

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The Effect of Inflation Rate and Rupiah Currency Exchange Rate Fluctuation toward Stock Risk at Indonesia Capital Market

Authors
Basri Basri, Bimo Harnaji, Kartinah Kartinah
Corresponding Author
Basri Basri
Available Online July 2019.
DOI
10.2991/icobame-18.2019.58How to use a DOI?
Keywords
equity premium; inflation rate and fluctuating Rupiah exchange rate
Abstract

Equity premium is stock investment risk that it is necessary to consider to be included into free-risk return becomes return investor expectation. Equity premium inquirer occurred since it has been excessively extended to explain on capital asset pricing of Sharpe model. Equity premium explaining factor has been invented some variables, the following research will examine inflation rate variable, the fluctuation of rupiah exchange rate based on macro-economics factor which has influence to equity premium. Sample using purposive sampling as much 213 stocks which have completed data during period January 2007 up to December 2015. Secondary Data was collected using documentation method through electronic media. The result of this analyze found that inflation rate has negative influence significantly not in line with the theory due to inflation rate in Indonesia both its amount and its fluctuation are inversely proportional to advanced countries such as USA, while the fluctuating rupiah exchange rate is depreciated by the significant positive influence to equity premium.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
July 2019
ISBN
978-94-6252-750-8
ISSN
2352-5428
DOI
10.2991/icobame-18.2019.58How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Basri Basri
AU  - Bimo Harnaji
AU  - Kartinah Kartinah
PY  - 2019/07
DA  - 2019/07
TI  - The Effect of Inflation Rate and Rupiah Currency Exchange Rate Fluctuation toward Stock Risk at Indonesia Capital Market
BT  - Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
PB  - Atlantis Press
SP  - 273
EP  - 276
SN  - 2352-5428
UR  - https://doi.org/10.2991/icobame-18.2019.58
DO  - 10.2991/icobame-18.2019.58
ID  - Basri2019/07
ER  -