Combined Share Price Index (IHSG) In Indonesia Stock Exchange Affected By Regional Asia Southeast Exchange Index
- October 23, 2021
- Posted by: rsispostadmin
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IX, September 2021 | ISSN 2454–6186
Tiolina Evi 1, Ignatius Septo Pramesworo 2
1 Accounting Department, Faculty of Economic and Business, Perbanas Institute Jakarta, Indonesia
2 Management Department, Faculty of Economic and Business, Perbanas Institute Jakarta, Indonesia
Abstract : This study aims to examine the effect of the Southeast Asia Regional Stock Exchange Index on the Indonesia Stock Exchange Index either partially or simultaneously. The three indexes for Southeast Asia are the Kuala Lumpur Stock Exchange (Malaysia), the Straits Times Index (Singapore), and the Stock Exchange Thailand (Thailand). Meanwhile, Indonesia is represented by the Composite Stock Price Index (IHSG). Simple sample method used by collecting data for 60 months from January 2014 to December 2017. Data analysis to test the hypothesis of this study using Eviews version 8. The data analysis method used is multiple linear regression analysis method. The results of this study indicate that the three Asian Regional Stock Exchange Indices partially or simultaneously have a positive effect on the Composite Stock Price Index (IHSG).
Keywords: Kuala Lumpur Stock Exchange (KLSE), Strait Times Index (STI), Thailand Stock Exchange (SET), and Composite Stock Price Index (IHSG)
I. INTRODUCTION
The investment business is a business that is excellent in various countries in the world. Even the business involves the finance of various large companies in the world. The development of technology and information provides convenience in global communication, especially investment transactions. Computerization is an attempt to modernize in this case the investment business.
There are two places to do investment business, namely the money market and the capital market. Both have more or less similarities and differences. The equation is where the excess and undercapitalized parties meet. This capital is intended to meet liquidity needs, working capital, and so on. However, the money market and the capital market have very striking differences, namely the instruments used and the investment period. The financial market tends to be used for short-term needs with a period of less than one year. The instruments available on the Indonesian money market include Bank Indonesia Certificates (SBI), Money Market Securities, and Certificates of Deposit. Meanwhile, the capital market is used to meet long-term needs with a period of more than one year. Instruments available in the Indonesian capital market include stocks and bonds.
With globalization, investors can invest without territorial restrictions. This is because globalization seems to be removing restrictions in carrying out activities, including
