The Influence of Inflation, Exchange Rates, and Investor Sentiment on The Stock Price

DOI

10.2991/978-94-6239-709-5_103How to use a DOI?

Keywords

Inflation; Exchange Rate; Investor Sentiment; Stock Price Index

Abstract

This Study investigates the influence of inflation, exchange rate fluctuations, and investor sentiment on the stock price index of oil and gas companies listed in the LQ45 during the 2020–2024 period, with special reference to the Russia–Ukraine conflict. Employing a quantitative method with a causal–comparative design, the research utilizes secondary data obtained from Bank Indonesia, Badan Pusat Statistik, and Investing.com, while investor sentiment is measured using media-based and perception-based indicators. The data were analyzed using multiple linear regression (Ordinary Least Squares/OLS) with diagnostic tests to ensure model validity. The results reveal that inflation does not exert a significant effect on the stock price index, whereas exchange rate fluctuations and investor sentiment both show positive and significant impacts. Simultaneous testing confirms that the three variables jointly influence stock price movements. These findings highlight that external factors—particularly exchange rate volatility and psychological reactions of investors—play a more dominant role than domestic inflationary pressures in shaping the performance of oil and gas stocks. This implies that investors should closely monitor currency fluctuations and market sentiment when making investment decisions, especially during periods of geopolitical uncertainty. Policymakers are advised to maintain ex-change rate stability and manage market expectations to strengthen the resilience of Indonesia’s capital market. Future research could extend the scope by including other macroeconomic variables, longer observation periods, or advanced sentiment analysis techniques to provide a more comprehensive understanding of stock market dynamics.

Copyright

© 2026 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  - Irma Savira
PY  - 2026
DA  - 2026/06/20
TI  - The Influence of Inflation, Exchange Rates, and Investor Sentiment on The Stock Price
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 1480
EP  - 1490
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_103
DO  - 10.2991/978-94-6239-709-5_103
ID  - Savira2026
ER  -