Department of Management, Faculty of Business Economics, Universitas Muhammadiyah Jember

The supply chain of mining businesses listed on the Indonesia Stock Exchange (IDX) has declined due to the significant impact brought about by the uncertainty of an increasingly complex world economic climate. This study aims to determine the relationship between interest rates, inflation, currency...

Full description

Saved in:
Bibliographic Details
Published inJurnal manajemen Vol. 28; no. 1; pp. 107 - 130
Main Author Satoto, Eko Budi
Format Journal Article
LanguageEnglish
Published Universitas Tarumanagara 01.02.2024
Subjects
interest rates; inflation; exchange rates; stock returns; firm value
Online AccessGet full text

Cover

More Information
Summary:The supply chain of mining businesses listed on the Indonesia Stock Exchange (IDX) has declined due to the significant impact brought about by the uncertainty of an increasingly complex world economic climate. This study aims to determine the relationship between interest rates, inflation, currency exchange rates, stock returns, and firm value. Structural Equation Modeling (SEM) analysis was conducted to decipher the data in this study. The research findings show that the mining industry in Indonesia is highly influenced by macroeconomic factors, especially interest rates, inflation, and exchange rates. The negative relationship between interest rates and inflation negatively affects stock returns and firm value. Meanwhile, it increased the rupiah's value positively and significantly influenced stock returns and business value. Higher stock returns can increase the value of mining companies listed on the Indonesia Stock Exchange (IDX).
ISSN:1410-3583
2549-8797
DOI:10.24912/jm.v28i1.1700