Error Correction Model on Determinants of LQ-45 Index

DOI

10.2991/978-2-38476-046-6_100How to use a DOI?

Keywords

LQ-45 index; ECM; macroeconomic variables

Abstract

The JCI and the forces influencing it are examples of long-term economic phenomena, and the ECM model is the ideal model to evaluate these economic variables. The Combined Portfolio Price Index (JCI), which measures the success of the Indonesian portfolio market, performs well [1]. All portfolio price performances listed on the development board of the Indonesia Stock Exchange are measured by the Composite Stock Price Index [2]. In addition to the Composite Portfolio Price Index (JCI), there are various more types of portfolio price indices available on the Indonesia Stock Exchange (IDX). The LQ45 Index was used as an observed sample in this investigation. The market capitalization value of 45 issuers is measured by the LQ45 index, which also includes the most liquid and largest market capitalization portfolio. LQ45 is regarded as a tool for evaluating the success of investments made via capital markets [3]. The LQ45 Index movement is employed as a statistic of portfolio movements with high liquidity so that the average value is shown, which is essentially representative of the state of the major portfolios in the national capital market. In order to correct the imbalance of the movement of the LQ-45 Index in the short term towards a long-term equilibrium and to be able to explain the relationship between bonded changers and free changers in the present and past, this research will: Add to the body of knowledge; Examine and analyze whether related macroeconomic variables affect the performance of the portfolio market in the short and long terms; View investment with the movement of the market.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Thomas Andrian
AU  - Ukhti Ciptawaty
AU  - Yenni Agustina
PY  - 2023
DA  - 2023/05/02
TI  - Error Correction Model on Determinants of LQ-45 Index
BT  - Proceedings of the 3rd Universitas Lampung International Conference on Social Sciences (ULICoSS 2022)
PB  - Atlantis Press
SP  - 1038
EP  - 1049
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-046-6_100
DO  - 10.2991/978-2-38476-046-6_100
ID  - Andrian2023
ER  -