The Impact of Macro-Economic Variables on the Indonesia Composite Index in 2005-2011 (A Comparison Study During Crisis and Non-Crisis Period)
This research tries to find out the impact of macro-economy variables on Indonesia Capital Market Index (year 2005-2011) during non-crisis and crisis period. the data consist of four variables. Three independent variables are gold price, Bank of Indonesia interest rate (BI rate) and exchange rate. the dependent variable is Indonesia Composite Index (IHSG). This study employs multiple linear regressions that conducted using Eviews 7.0 software to determine the research hypothesis. Through this research, the author founds out that there is contribution from the variables towards IHSG. There is another finding that shows gold price has significance positive contribution towards IHSG and for the exchange rates has significant negative contribution towards IHSG, both of them happened in non-crisis period. During the crisis period, gold price and exchange rate still the most significant variables on IHSG. But the gold price become negative relationship and for the exchange rate become positive relationship towards IHSG. For BI rate relationship also changed in non-crisis and crisis period. And BI rate is the only factor that not significance in this study.
No other version available