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Energy Price and Stock Return: Evidence of Energy Sector Companies in Indonesia

Author

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  • Pande Ketut Rheynaldi

    (Universitas Mercu Buana, Jakarta, Indonesia,)

  • Endri Endri

    (Universitas Mercu Buana, Jakarta, Indonesia,)

  • Minanari Minanari

    (Universitas Mercu Buana, Jakarta, Indonesia,)

  • Putri Andari Ferranti

    (Universitas Mercu Buana, Jakarta, Indonesia,)

  • Subur Karyatun

    (Universitas Nasional, Jakarta, Indonesia.)

Abstract

This research aims to analyze the effect of the exchange rates, interest rates, oil prices, coal prices, debt-to-equity ratio, return on asset, and firm size on the dependent variable stock returns in energy sector companies listed on the Indonesia Stock Exchange in 2017 to 2021. The analysis technique in this study was carried out using a panel data regression test with the Eviews10 program. The results of this study indicate that the variables coal price, debt-to-equity ratio, and firm size have no effect on stock returns, while oil prices and return on assets have a positive impact on stock returns. On the other hand, exchange rates and interest rates have a negative effect on stock returns.

Suggested Citation

  • Pande Ketut Rheynaldi & Endri Endri & Minanari Minanari & Putri Andari Ferranti & Subur Karyatun, 2023. "Energy Price and Stock Return: Evidence of Energy Sector Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 31-36, September.
    • Handle: RePEc:eco:journ2:2023-05-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Stock Return; Energy Price; Energy Sector Company; Indonesia;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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