Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia

Research Article

Analysis the Determinants of Stock Price: An Empirical Study of Indonesian Commercial Banks

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  • @INPROCEEDINGS{10.4108/eai.18-11-2020.2311704,
        author={Farida  Farida and Anissa Hakim  Purwantini and Desi  Nurpitasari},
        title={Analysis the Determinants of Stock Price: An Empirical Study of Indonesian Commercial Banks},
        proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={BIS-HSS},
        year={2021},
        month={9},
        keywords={stock price commercial bank covid-19 pandemic macroeconomic},
        doi={10.4108/eai.18-11-2020.2311704}
    }
    
  • Farida Farida
    Anissa Hakim Purwantini
    Desi Nurpitasari
    Year: 2021
    Analysis the Determinants of Stock Price: An Empirical Study of Indonesian Commercial Banks
    BIS-HSS
    EAI
    DOI: 10.4108/eai.18-11-2020.2311704
Farida Farida1, Anissa Hakim Purwantini1,*, Desi Nurpitasari1
  • 1: Department of Accounting, Universitas Muhammadiyah Magelang, 56122, Indonesia
*Contact email: anissa.hakim@ummgl.ac.id

Abstract

The stock price is the price of a share that occurs on the stock exchange at a particular time, determined by market participants based on the level of demand and supply. Erratic prices present challenges and opportunities to invest, especially during this pandemic era. Precise analysis of stock prices will provide opportunities for investors to get high returns. This study investigates the external factors that influence stock prices in the banking sector in Indonesia. The data analysis method used is the regression analysis and paired test method. This study's sample consisted of 37 commercial banks listed on the Indonesia Stock Exchange (IDX) from 2019-2020. The number of data observations using purposive sampling is 444 samples. The results reveal that inflation, economic growth, and the money supply have no impact on stock prices. Meanwhile, the rupiah exchange rate and interest rates have a positive impact on stock prices. The results also find that there are differences in stock prices before and during the Covid-19 pandemic. Exciting research results and contributions are also discussed.