Proceedings of the 1st International Conference on Economics Engineering and Social Science, InCEESS 2020, 17-18 July, Bekasi, Indonesia

Research Article

Analysis of Stocks Return, Internal Factors, and Macroeconomics for Investor’s Decision Making

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  • @INPROCEEDINGS{10.4108/eai.17-7-2020.2303001,
        author={Ghina  Salsabila and Endang  Chumaidiyah and Rita  Zulbetti},
        title={Analysis of Stocks Return, Internal Factors, and Macroeconomics for Investor’s Decision Making},
        proceedings={Proceedings of the 1st International Conference on Economics Engineering and Social Science, InCEESS 2020, 17-18 July, Bekasi, Indonesia},
        publisher={EAI},
        proceedings_a={INCEESS},
        year={2021},
        month={1},
        keywords={stock return decision making internal factors macroeconomics},
        doi={10.4108/eai.17-7-2020.2303001}
    }
    
  • Ghina Salsabila
    Endang Chumaidiyah
    Rita Zulbetti
    Year: 2021
    Analysis of Stocks Return, Internal Factors, and Macroeconomics for Investor’s Decision Making
    INCEESS
    EAI
    DOI: 10.4108/eai.17-7-2020.2303001
Ghina Salsabila1,*, Endang Chumaidiyah1, Rita Zulbetti1
  • 1: Industrial Engineering Department, Telkom University, Bandung, Indonesia
*Contact email: ghinasalsabila@student.telkomuniversity.ac.id

Abstract

Building construction companies placed on the top three, the most significant business field contributes to GDP (Gross Domestic Product) in Indonesia, with an annual average of 12 percent. This study aims to determine the effect of internal factors and macroeconomics simultaneously and partially on stock return at building construction companies. Variables of internal factors are EPS (Earning Per Share), DER (Debt to Equity Ratio), and ROE (Return on Equity), while variables of macroeconomics are BI Rate, inflation, and economic growth. This research purpose is to help investor’s decision making of stock return. The data type used are secondary data, time series, and cross- section by using data panel regression with a linear output regression. The sample used is seven-building construction companies listed in IDX (Indonesia Stock Exchange) during the period 2014-2019. This research found inflation is a variable that has simultaneously and partially affected on the stock return. Decision-makers should consider inflation toward improves the performance of building construction companies.