Macroeconomic Influences on Technology Stock Performance in the Green Economy Era (2018-2022)

 Rully Arestha¹ , Silvia Susanto² 

Abstract

This research project aims to analyse the effect of the inflation rate, the BI 7-day repo rate and the exchange rate on the stock performance of technology sector companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. The study aims to test the hypothesis that macroeconomic factors exert an influence on stock prices, both individually and collectively. A quantitative approach is employed, utilising time series regression analysis. The sampling technique employed is purposive sampling, with a population comprising 34 companies and a sample of eight technology companies. The research entails the collection of data from publicly accessible financial statements and pertinent macroeconomic indicators. The findings indicate that (1) the inflation rate, BI 7-day repo rate, and exchange rate have a significant effect on stock performance when analysed together; (2) individually, the inflation rate has a positive but not significant effect on stock prices; (3) the BI 7-day repo rate has a negative and significant effect on stock prices; and (4) the exchange rate has a positive but not significant effect on stock prices. These results indicate that alterations in macroeconomic variables exert a pivotal influence on the stock performance of technology companies, with a particular focus on interest rates, which exert a pronounced impact on the financial environment. The study proposes further investigation into the relationship between macroeconomic variables and stock performance in the context of sustainability and digital transformation in the green economy era.