Economic growth, which includes economic
growth, purchasing power of the society,
investment prospects in the area of operations.
Social and political situations, which includes
demography, social conditions, culture, politics,
stability in terms of security of the area of
operations, Fernandes and Solimun [14]. In the
stock market, the most important thing investors
should know is the stock price. Share price is the
price of a share that occurs on the stock market at a
certain time determined by market participants and
determined by the demand and supply of the
relevant shares in the capital market, Jogiyanto
[15]. The share price determines shareholder
wealth. Maximizing shareholder wealth translates
into maximizing the company's share price. The
stock price at any given time will depend on the
cash flows expected to be received in the future by
the "average" investor if the investor buys the
stock, Houston [16].
The nation’s competitiveness means the role of
existing human resources in Indonesia in
contributing to world market through products
and/or services produced by the ability of
Indonesian human resources through mastery of
technology, science and skills, Sumardi and
Fernandes [17]. Stock prices in the market are
always fluctuating, or always changing. Several
studies link stock prices with company
performance. If the company's performance is
good, the stock price will also increase. The
company's performance can be seen from its
financial statements. Usually companies that have
gone public have an obligation to publish their
financial statements at least once every three
months. When there is publication of financial
statements, investors will see the performance of
the financial statements of the company. If the
company's profits increase, investors will be
interested in buying the shares, the demand for
these shares will also increase, so the stock price
will rise. This applies vice versa, if the company
suffers a loss then the stock price will tend to fall.
The article that regulates the stock market is
stated in Law no. 8 of 1995 article 1 point 13, "the
stock market is a public offering activity carried out
in securities trading, political companies,
institutions and professions related to securities
have been issued", Dyasartika [18]. Tandelilin [19],
defines the stock market as a place used to trade
securities between people who have a lot of funds
or excess funds and people who lack funds or need
funds which usually have an age of more than 1
year.
Shares are a sign of participation or ownership
of individual investors or institutional investors or
traders on investments or a number of funds
invested in a company, Musdalifah, Mintarti and
Maryam [20]. The stock market is a place where
government and industry can raise long-term
capital and investors can buy and sell securities,
Saraswati [21]. In addition, there is a positive
relationship between an efficient stock market and
economic growth in both the short and long term.
This is in line with the statement that the stock
market will not be able to run away from the
economic conditions of a country, Filbert and
Prasetya [22].
2.5 Covid-19
In December 2019, the corona virus or known as
Covid-19 appeared in Wuhan, China. This virus
spreads very quickly and infects not only Chinese
citizens but spreads to all corners of the world
including Indonesia. In Indonesia, the first case of
death due to COVID-19 occurred in March 2020,
after which new victims emerged, both positive for
COVID-19, as well as PDP (Patients Under
Supervision) and ODP (People Under Supervision).
Until now, the number of positive patients
continues to increase (Covid-19, 2020). Covid-19
has an incubation period of 2-14 days in the human
body with complaints resembling the flu, ranging
from fever, cough, runny nose, chest pain,
shortness of breath, to pneumonia, acute respiratory
distress syndrome, skepticism, and even death. The
pandemic has caused the International Monetary
Agency (IMF) to predict a global economic
slowdown will occur.
During the Covid-19 pandemic, which spread
all over the world. At first this did not affect the
stock market, but with more confirmed victims the
stock market reacted negatively, Khan, Ali, Shi,
Siddique, Nabi, Hu & Han [23]. This also caused
prices in the stock market to decline, especially
after WHO declared that Covid-19 was a pandemic
and caused negative abnormal returns, Alali [24].
3 Results and Discussion
3.1 Research Method
The statistical application should not be
complicated and difficult, it but must rather be
simple and easy, so that it is user-friendly, Solimun
and Fernandes [25]. The data used in this study is
primary data. The variables used in this study are as
follows: Rupiah Exchange Rate Fluctuations,
Government Policy and Market Manipulation
WSEAS TRANSACTIONS on MATHEMATICS
DOI: 10.37394/23206.2022.21.49
Aisyah Aryandani, Solimun, Nurjannah,
Adji Achmad Rinaldo Fernandes, Achmad Efendi