Abstract
This study examined the influence of the global sharia stock index on the Indonesian sharia stock index considering macroeconomic factors and their moderating role. The Global sharia Stock Index in this study used the Dow Jones sharia Market Index and the FTSE Global sharia Index Series. The role of moderation is proxied by inflation rate and exchange rate. The research data analysis method used multiple regression analysis and interaction test or moderating regression analysis. The results of the study showed that there was an influence of the Global Sharia Stock Index on the Indonesian Sharia Stock Index. In the moderation equation 1 (inflation) and moderation 2 (exchange rate) that interact with the Dow Jones sharia Market Index has a positive influence on each moderation equation. This showed that a moderating interaction with the Dow Jones sharia Market Index will strengthen its influence on the Indonesian Sharia Stock Index. The FTSE Global sharia Index Series that interacted with inflation in moderating equation 1 and the exchange rate in moderating equation 2 showed a negative effect. This showed that the interaction of the FTSE Global sharia Index Series with the two macroeconomic variables in each equation weakens its influence on the Indonesian Sharia Stock Index.
Highlights
Capital market as an important role in the economy of a country
Based on the estimation results, the first equation showed that there is an influence of the Global Sharia Stock Index on the Indonesian Sharia Stock Index
The results of the individual regression estimates showed that the Dow Jones sharia Market Index (DJIMI) had a positive and significant effect on the Indonesian Sharia Stock Index with a coefficient of 1.426654
Summary
Capital market as an important role in the economy of a country. The capital market acts as an important link between savers and investors. There is the Financial Times Stock Exchange Global sharia Index Series (FTSE GIIS) index that is one of the global indices in this study. This study considers macroeconomic factors such as inflation and exchange rates and their moderating role on the global sharia stock index in forming the Indonesian sharia stock index so that it can provide a clear illustration related to several policies in the Islamic finance field. RESEARCH METHODOLOGY This type of research was associative research aimed to determine the effect of the Global Sharia Index on the Indonesian Sharia Stock Index, by examining the role of macroeconomic factors as moderating variables. The interaction test was conducted to asses whether the moderating variable of the study (macroeconomic variable) was able to strengthen or weaken the relationship between the Global Sharia Stock.
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