Analysis of the Effect of Internal and External Factors on the Stock Price Index INFOBANK15

Abstract

This study aims to determine the effect of Return on Equity, inflation and interest rates on the INFOBANK15 stock price index in 2013-2020. In this case, the Return on Equity ratio represents internal factors, while inflation and interest rates represent external factors. The sample used in this study was 7 samples of companies that were not delisted during the study period using purposive sampling method. The variables used in this study consist of Return on Equity, inflation and interest rates as independent variables and Infobank15 stock price index as the dependent variable. The technical analysis used is the multiple linear method. The results obtained indicate that Return on Equity has no significant effect on the infobank15 stock price index, inflation has a significant negative effect on the infobank15 stock price index while interest rates have a significant negative effect on the infobank stock price index15. Simultaneous test results (F test) show that the independent variables (Return on Equity, inflation and interest rates) simultaneously have a significant effect on the Infobank15 stock price index variable.