Analyzing the Relationship Between Macroeconomic Interest Rates and Stock Fundamental Indicators: A Case Study of Indonesian Listed Companies

Abstract

This study analyzes the relationship between macroeconomic interest rates and stock fundamental indicators of companies listed on the Indonesia Stock Exchange (IDX). The primary objective is to explore how fluctuations in interest rates impact financial performance indicators such as Return on Equity (ROE), Earnings Per Share (EPS), and Debt to Equity Ratio (DER). The research utilizes a library-based methodology, reviewing secondary data from financial reports, academic journals, and macroeconomic sources. The findings reveal a significant sector-dependent effect of interest rates, with capital-intensive industries being more adversely affected than those with lower debt reliance. The study highlights the importance of considering industry-specific factors when evaluating the impact of interest rates on stock performance. These insights provide valuable implications for investors and policymakers, emphasizing the need for strategic decision-making based on sectoral vulnerabilities to interest rate changes. Future research should expand to include real-time data and broader market contexts to refine these conclusions.