THE EFFECT OF INFLATION, EXCHANGE RATES, GDP AND BI RATE ON THE SHARE PRICES OF STATE-OWNED BANKS

Abstract

Banking is an important sector in a country's economy, because it is a bridge that finances the real sector. Banking stocks are one of the stocks that are in great demand by investors. In investing funds, Company performance information is very important. External factors such as macroeconomics must be considered such as inflation, exchange rates, GDP and the BI Rate, because they can influence investment decisions. This study aims to find empirical evidence and determine the magnitude of the influence of the inflation rate, exchange rate, GDP and the BI Rate on share prices of state-owned banks either simultaneously or partially. The data used in this study is secondary data in the form of financial reports on the Indonesia Stock Exchange for the 2018-2023 period. The samples used in this study were 4 state-owned banks. Data analysis using multiple regression, with quantitative methods. Overall, the influence of the independent variables on the share price of state-owned banks has a positive and significant effect. Based on the R Square value of the BUMN Bank share price variable, it can be explained by the variables Inflation, exchange rate, Gross Domestic Product and BI Rate of 60.3% while the remaining 39.7% is influenced by other variables outside of this lesson. Simultaneously the variables of inflation, exchange rates, Gross Domestic Product and the BI Rate affect the share prices of state-owned banks.