Effects of Inflation and Exchange Rates on Stock Prices of PT Bank Negara Indonesia (Persero) Tbk

Abstract

This study aims to examine the effect of macroeconomic factors, namely the exchange rate and inflation, on the stock prices of PT Bank Negara Indonesia. This research is based on Kwofie and Ansah's study, which states that most investors do not consider the macroeconomic influence on stock prices. Previous research showed an influence between macroeconomic factors on stock prices. This study uses inflation and exchange rate data found at Bank Indonesia, while the stock price of PT. Bank Negara Indonesia, which is on the Indonesia Stock Exchange for the period 2009-2019, the data is tested using multiple regressions using eviews 10. The results showed that the exchange rate and inflation affect the stock prices at PT Bank Negara Indonesia. This indicates that there is adjusting to the theory of Arbitrage Pricing Theory (APT).