Abstract
Research on stock prices is an important aspect in the development of financial management studies, because it has an impact on scientific perspectives and is able to become a practical study for investors in making investment decisions. Interestingly, various studies show different results regarding the effect of macroeconomics on stock prices, both by sector, country classification, and study period. This study aims to examine more generally using the composite stock price index in analyzing macroeconomic effects on stock prices. The research period is used during 2000-2020, using the money supply and interest rates as macroeconomic variables in Indonesia and Malaysia. The results of the study show that both the money supply and interest rates have an influence on stock prices in Indonesia, while research in Malaysia shows that only interest rates have an influence on stock prices. Research in two emerging market countries shows different patterns of influence, this shows that Arbitrage Pricing Theory has different patterns of influence.
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