THE RELATION BETWEEN EXCHANGE RATE FLUCTUATION AND SHAREHOLDER RETURN IN INDONESIA: DOMESTIC FIRMS VERSUS MULTINATIONAL FIRMS

• Main Author: Ramaditya Nuriawan, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80941
• Institution: Institut Teknologi Bandung

The main focus of many studies has been on determining the factors that influence shareholder returns. This study aims to make a contribution to this subject by conducting a longitudinal study which is conducted on multinational and domestic non-financial companies in the mining and manufacturing sectors that are listed on the Indonesia stock exchange. The study will cover the period from 2016 to 2022. To comprehend the effects of exchange rate exposure. OLS regression models are primarily employed to analyze the specific influence of exchange rate exposure on shareholder return. Significant evidence has been discovered indicating that there are both similarities and differences between domestic and multinational companies operating in the mining and manufacturing sectors in Indonesia. These similarities and differences pertain to the influence of exchange rates on the return on assets. When comparing multinational and domestic companies, both are affected by exchange rate exposure. However, multinational companies experience a higher return on assets as a result. In summary, these findings enhance the existing literature by expanding the analysis to include the years 2016-2022. They provide valuable insights into the relationship between exchange rate exposure and shareholder return.