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Macroeconomic Factors and Influence on Stock Return That Impact the Corporate Values

Author

Listed:
  • Fariz Mohamad Iqmal

    (Department of Business, Widyatama University, Bandung, Indonesia)

  • Ivan Gumilar Sambas Putra

    (Department of Business, Widyatama University, Bandung, Indonesia)

Abstract

This research aims to determine the influence of macroeconomic variables on stock return and its impact on corporate values. This research became a repenting to be done because of the rapidly changing global situation, and the number of focus that affects back stocks, so that investors need to know which macro economic factors are most noteworthy, while For our company put the value of the company as consideration for management in the decision making.The population in this research is the sector of agriculture because based on the results of the sector's observation, the most severe decline in performance among others. Further sampling is done by the purposive sampling method, so from 22 companies that listings only 15 companies that meet the criteria. The analytical technique to be used in this study is to use a double linear regression analysis technique expanded with a pathwayanalysis method to obtain a comprehensive picture of the relationship between variables of one variable with other. We find is an inflation and interest ratenegatively and significantly affectingthe return of shares. The exchange rate positively and significantly affects the stock return and the influential stock return rate positively andsignificant to the corporate values.

Suggested Citation

  • Fariz Mohamad Iqmal & Ivan Gumilar Sambas Putra, 2020. "Macroeconomic Factors and Influence on Stock Return That Impact the Corporate Values," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 68-75, January.
  • Handle: RePEc:rbs:ijfbss:v:9:y:2020:i:1:p:68-75
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    Cited by:

    1. Carrasco Gutierrez, Carlos Enrique & Peixoto Messias, Iasmin Emillyn, 2022. "Macroeconomic factors and value and growth strategies: evidence from Brazil," MPRA Paper 114875, University Library of Munich, Germany.

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