transforming business in emerging...

Transforming Business in Emerging Markets

AIMI IC 2015 ISBN: 978-602-7677-80-7


AIMI IC 2015 ISBN: 978-602-7677-80-7

TABLE OF CONTENTS

Welcome Messages ...................................................................................................................... i

2015 Program Acknowledgements ............................................................................................... ii

Academic Papers

Analysis Of Factors Affecting The Decision To Purchase Products Tupperware In Malaho Bangkahulu Perdana In Bengkulu ............................................................................................................................. 1 (Hj Muhartini Salim, Imelda Arga Rini) 1

Ministry of Religion in Supporting Ability Religious Tolerence : Effect of Leadership Charismatic, Employees Competence, Stress Tolerance and Interpersonal Trust ................................................... 16 (John Hendry, S.Kom., MM, Endrang Ak. MBA., CfrA., CA.) 4

Human Resource Development Strategy For Fishermen In Bengkulu Province (Literature Study Approach) .......................................................................................................................................... 35 (Anzori Tawakal) 5

Policy Simulation On Demand And Supply Beef In Indonesia ............................................................. 47 (Dewi Rahmayanti, Sri Handayani) 7

Labour Outsourcing As A Transforming Strategy Into Winning The Competition In An Emerging Market ............................................................................................................................................... 61 (Muhammad Istan) 8

The Analyses of Profit Ratio, Solvency Ratio, Company Scale and Economical Value Added toward the Stock Price (Consumer Goods Industrial Company Listed in Indonesian Stock Exchange in Period of 2009-2012) ......................................................................................................................................... 72 (Rulyanti Wardhani, Nizwan Zukhri, Devi Valeriani) 9

The Influence of Emotional Intelligence, Discipline and Attitude to Work on Job Satisfaction : Literature Review ................................................................................................................................ 88 (Jamhari Abdillah) 10

The Analysis of Production and Consumption Pattern on Cattle Farmer’s Household at Megang Sakti Subdistrict Musi Rawas Regency .............................................................................. 97 (Hayatun Nofrida, Nenny Wahyuni) 14

Improving Local Government Revenue : The Scope For Local Taxes (A Case Study Of Musi Rawas) 108 (Gotri Suyanto, Amrullah) 15

The Influence Of Ownership Structure And Leverage On Disclosure of Corporate Social Responsibility Manufacture Companies In Indonesian Stock Exchange .................................................................. 124 (Suharto, Miki Indika) 16

Examining the effect of online servicescapes on Indonesian consumer purchase intention ............ 152 (Amelia, Husnaina Mailisa Safitri) 17

Shortly Co-Movement Quarterly Earnings Per Share And Monthly Stock Prices: A Case Study Of Unilever Indonesia (UNVR). .............................................................................................................. 162


AIMI IC 2015 ISBN: 978-602-7677-80-7

(Iskandar Zulkarnain) 18

The Interrelation among Leadership Style, Organization Commitment, Satisfaction on Controlling System, Academic Culture, and Staff Performance: Empirical Study of Academic Culture in The Institution of Educational Quality Assurance in Bengkulu Province ................................................. 170 (Komarudin, Wilysa Mardani) 19

Performance Evaluation Of Higher Education Institutions With Balanced Scorecard Approach ...... 198 (Sri Ekowati, Yusmaniarti) 20

A Case Study Of Good Corporate Governance Implementation By The Board Of Commisioners And Directors According To PBI Nomor.8 / 4 / PBI / 2006 In PT BANK BENGKULU ................................. 213 (MohaMmad Ichsan, Muhammad Rusdi, Muhammad Nahsyah) 21

Health Financing Analisys In The Implementation Of National Health Insurance In Bengkulu Province .......................................................................................................................................................... 222 (Henni Febriawati, Yandrizal) 22

The Tourism Spot Development Strategies Of Long Beach Bengkulu Viewed From The Perceptions Of The Torists And The Local Citizens .................................................................................................... 231 (Budiman Sakti, Harun) 23

The Effect Of Remuneration And Working Motivation To Employee Performance In Ministry Of Finance Institution (Study of State Treasury Office, Tax Office Primary and State Property Office and Auctionin the Bengkulu City) ............................................................................................................ 240 (Ersan Syahfitri, Gustian Harianto, Sahat M. Situmorang, Wiadi) 25

The Influence of Accounting Information System Toward Internal Accounting Control Affectivity of PT Bank Sumsel Babel Lubuklinggau ................................................................................................. 254 (Yayuk Marliza, Herawati) 26

Time Allocation of Household Rubber Farmers and Their Effects on The Farmers Income in Musi Rawas District South Sumatra Province ............................................................................................ 258 (Dian Chandera, May Shiska Puspitasari) 27

Bargaining Position Of Farmers In Tilapia Marketing ........................................................................ 271 (Zaini Amin, Andry) 28

Impact Measures Against Experience Marketing Effective And Customer Satisfaction At Bank ...... 276 (Afifi Bachtiar, Silke Sachnovrissa) 30

Study Model Institutional Development Organizations Local Goverment In Realize Good Governance (Study in Central Bengkulu Regency) ................................................................................................ 296 (Seprianti Eka Putri, Syaiful Anwar, Drmansyah) 32

A Study Of Human Resource Practices In Relationship Towards Employees’ Turnovel Intention In The Manufacturiing Industry In Perak, Malaysia ..................................................................................... 302 (Ismail Reza Bin Abd Rahman, Norizan Bin Mohamad Ia, Ugen J. Krishan, Julian Jelani) 33

The Relationship Between Property Stock Prices And Macroeconomics Variables:A Malaysian Case Study ................................................................................................................................................. 314 (Mohd Nasraf Bin Mohd Nasruddin, Jayanthi Devathas, Karona Cahya Susena) 34


AIMI IC 2015 ISBN: 978-602-7677-80-7

Financial Record Management Practices Among Small Medium Entrepreneurs (SME’s) In Terengganu, Malaysia. ...................................................................................................................... 320 (Norizan Bin Mohamad Ia, Ismail Reza Bin Abd Rahman, Mohd Nashraf Bin Mohd Nasruddin) 35

Government Role In Society Poverty Problem Alleviate In The City Of Bengkulu ............................. 334 (Heru Susanto) 39

Strategic Planning For Plant Site Selection (An Empirical Study) ...................................................... 340 (Mansyur Daniel) 40

The Images Of Tes Lake As Tourists Visited Destinations In The Provice Of Bengkulu ..................... 350 (Syamsul Huda) 42

The Development Of Industrial Sectors To Redusce Proverty And Inequality In Indonesia ............. 367 (Ahmad Soleh, Suwarni, Nenden Restu Hidayah) 44

The Linkage Between Spiritual Leadership, Employee Satisfaction and Organizational Commitment:Insights From Public Servants .................................................................................... 383 (Tamri) 45

Partnership Program and Community Development and Its Effect on Development of Small and Medium Enterprises in Bengkulu (Case Study PT. Jasa Rharja (Persero) Branch of Bengkulu) ........ 392 (Islamuddin) 47

Identification of Distribution Channel and Marketing Efficiency of Coffee Powder ......................... 401 (Hayatun Nofrida, Nenny Wahyuni) 48

Marketing Mix Strategy And Accreditaion Status Influences On Students Decision Of University Prof. Dr. Hazairin, Sh Bengkulu ................................................................................................................. 407 (Arifah Hidayati) 51

Public Service Innovation Development Strategy Service Orientation, Customer Orientation, Service Innovation, and Organizational Performance Relationship Modeling ............................................. 418 (Sularsih Anggarawati, Fachri Eka Saputra, Armelly) 52

Model of Strategy Enhanched Competitiveness for Small Medium Enterprises in Proverty Area and Prone Natural Disasters ................................................................................................................... 432 (Agus Utomo, Anwar Hamdani, Riyanto) 53

The Effectiveness of Tacit Knowledge Transfer Among Individuals In an Organization ....................448 (Dessy Tri Kurniawati) 54

In love with brand: a literatur review in management ..................................................................... 454 (Ikhtiara Isharina) 55

Revisiting the concept of knowledge management orientation : an evidence from indonesian creative industry sector ................................................................................................................... 461 (Ananda Sabil Hussein , Mintarti Rahayu, Sri Palupi Prabandari, Nadiyah Hirfiyana Rosita) 58 Human Resource Flexibility, Adaptability Culture, and Organizational Innovation .......................... 466 (Ben Roy Do, Pi Wen Yeh)

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AIMI IC 2015 ISBN: 978-602-7677-80-7

The Effect Of Corporate Social Responsibility Commitment To Organization and Performance Of Employees ........................................................................................................................................ 481 (Anwar Hamdani, I Gusti Putu Diva Awatara) 56

The Role Of Environmental Ethics in Mediating of Influence of Leadership and Cultural Organization Toward Employee Performance of Environmentally Friendly .......................................................... 486 (Siti Fatonah, Anggoro Panji Nugroho) 57

Investment Based on Economic and Social Commitment To Enhanced Firm Value: A Role of Board of Directors .......................................................................................................................................... 491 (Etty Indriani, Djoko Sekti Riyadi) 50

Strategy of Local Television in Competitive Broadcasting Industry in Bengkulu .............................. 503 (Dedy Wahyudi) 46

The Effect Transformational Leadership, Financial Incentives, Power Leadership, Empowerment Climate On Motivation Intrinsic ....................................................................................................... 520 (Intihan, Meilaty Fintharia Sari) 43

Effect Of Government Internal Control Application System (SPIP) And Human Resources Competence For The Effectiveness Of Fianancial Management Area ............................................. 540 (Baihaqi, Agus Haryanto, Karina Rizanti) 37

Tourism Branding (Tourism Development Model with Rainbow Troops Momentum-Based in Belitung Island) ............................................................................................................................................... 555 (Nizwan Zukhri, Dwi Haryani, Jamilah Cholilah) 11

The analysis Of Citrus Marketing Slam in Musi Rawas Regency ....................................................... 574 (Verry Yarda Ningsih, Adi Winata) 13

The Effect Of Perceived Value And Corporate Image On Customer Loyalty Moderated By Financial SwitchIng Cost .................................................................................................................................. 580 (Darmansyah,Akram Harmoni Wiardi, Amelly) 2

Efforts To Enhancing Community Competitiveness (Citizen Advantage) Based On Information Technology: Study On Smes Creative Industry In Bengkulu .............................................................. 593 (Effed Darta Hadi, Slamet Widodo, Willy Abdillah, Ferry Tema Atmajaya, Fachri Eka Saputra) 3

The Effect of Ethical Climate and Organizational Commitment to Deviant Workplace Behavior ..... 608 (Noermijati, Ana Sofia Aryati.) 62

Impact of Service Quality on Student Satisfaction in Higher Education ............................................ 615 (Fatchur Rohman., Radityo Putro Handrito) 59

The Effect of Humanities Value on the Entrepreneur Characteristics and the Decision of Being an Entrepreneur .................................................................................................................................... 620 (Nadiyah Hirfiyana Rosita, Sri Palupi Prabandari) 60

An Analysis Of Total Quality Management With The Orientation Of Etrepreneurship And Market To Improve The Competitive Advantages Toward The Profitability Of Koperasi .................................. 626 (Muhamad Sil) 31


AIMI IC 2015 ISBN: 978-602-7677-80-7

Eid Mubarak: What And How Do They Purchase? Exlporing the Consumption Pattern Of Muslims At

Kediri, East Java, Indonesia ............................................................................................................... 633

(Fatchur Rohman, Taufiq Ismail) 61

Paticipants Index .............................................................................................................................. 640


i

Welcome Message From Chairman of AIMI Assalamu alaikum wr. wb. Welcome to the fourth International Conference AIMI 2015

As I have stated before that this International conference is the fourth

International Conference organized by AIMI. The first was held in Denpasar Bali in 2010, and continued to the second which was conducted in Pekanbaru in 2011, and the third was held in Makassar in 2013. Time goes by and it has been for almost six years AIMI has been established and give beneficial to its members as well as Indonesian society. In line with the mission of AIMI which intends to bridge between academic field, especially faculty of economics and business, and the real business world, in terms of decision making process in a business organization and public as well as government institutions.

AIMI has considered, synchronized, and harmonized between the development

and rapid progress in the management practice that is a decision making process including planning, doing, and evaluation in the business and public organization, and the development of higher education, as an institution to transfer knowledge and its development to students as well as to develop and create knowledge and technology. Whereas, the current condition remains showing that the role of higher education is still one step back than the management practice in terms of the effort to elevate public and private/business organizational performance.

As we commonly known that business organization cannot be separated from

Industrialization as a process to fulfill the need of society and country. Industrialization is also an interaction of natural, human, financial, institutional, and technology resources. The interaction among them will influence the surrounding environment quality. The industrialization can be a driving of the production factor which moves the goods or raw material from the origin place of the production to the manufacturing process. Meanwhile, the finished goods as the result of manufacturing are also driven from the factory to the consumers who need the goods. By connecting the production factor and finished good movement to Indonesia as an archipelago state, it will bring it as one of the topics being discussed in this conference.

Moreover, referring to the contribution of AIMI as stated above, it is undoubtable

that AIMI has a high role that is to strengthen Indonesian product and service competitiveness. Through four prominent programs for the next three years (AIMI Committee of 2014-2017) which are organizational, information, cooperation, and expertise programs, it is hoped that AIMI can elevate Indonesian product and service competitiveness.

Global market gives huge opportunities to companies which have product and

service competitiveness. Therefore, this precious moment will become a great opportunity for business practitioners and academics to share. As for business practitioners, they can share their current activities, and for academics they can deliver relevant theories which are suitable with the current condition.


ii

And finally, I would like to express my great gratitude to AIMI members, especially AIMI Bengkulu and all universities in Bengkulu who actively participate in this international conference. My gratitude is also expressed to all the business practitioners who have share their time and give us material and immaterial support. And the last, I would like to thank you to all the sponsors and our distinguished guests, the participants of the fourth AIMI International Conference.

Hope this International Conference will be beneficial for all of us and Indonesian Society.

Thank you.

Prof. Armanu Thoyib, Ph.D Chairman of AIMI


iii

Welcome Message From Conference Chairman

Welcome to International Conference Indonesian Management Scientists Association

(AIMI) 2015.

This International Conference is a manifestation of an attempt to synergize the

participation of practitioners and academics in building Indonesia, particularly in the

field of economics and business.

AIMI IC 2015 hosted by Indonesian Management Scientists Association working

with University Brawijaya, University Bengkulu and Dehasen University. Indonesian

Management Scientists Association supporting role in promoting Bengkulu as an

international city.

IC AIMI has successfully organized annual conferences in cooperation with the

higher education institutions. Support of academics, researchers and business

practitioners are clearly visible from a paper accepted by the organizers of this year. This

year a total of 6 abstracts and 49 full papers were received and most of them will be

presented.

I would like to thank and congratulate the chairman Indonesian Management

Scientists Association, Rector of University Brawijaya, Dean of Faculty of Economics and

Business, University of Brawijaya, Rector of University Bengkulu, Dean of Faculty of

Economics and Business University Bengkulu, the Coordinator of the Doctoral Program

in Management Science University Bengkulu, University Rector of Dehasen Bengkulu,

Dean of Faculty of Economics University Dehasen Bengkulu for their support, the

Ministry of Public Works and Housing Bengkulu Provincial People financial support of PT.

Bank Bengkulu, PT. Rodateknindo Purajaya, PT. Rico South Son and other sponsors, PT.

Pelabuhan Indonesia II Branch Bengkulu, Cipta Mandiri Planner, RSJKO Province of

Bengkulu, Bengkulu Muhammadiyah University, University Professor Dr. Hazairin

Bengkulu, STIKES Bakti Husada, PT. Foundation work Megah PT. Samumi Jaya Sakti, CV.

Modecom, for their financial support. I want to thank you for all the participants and

organizing for their support.

Ir. M. Nashsyah, MM., MT.

Conference Chair


iv

Welcome Message From Program Chairman

As the conference manager of 4th ICAIMI 2015 Conference, it is my pleasure and

previlege in welcome friends, colleagues, and participants from all over the world

attending this conference.

The 4th Interational Conference AIMI (ICAIMI) 2015 is designed to encourage

management and business research, education, and more importanly the knowledge

dissemination that are relevance to management studies. The conference provides a

platform for all academia who are interested in management and business

development issues relevant to the growth of global economic that enable the

participants to share their knowledge and their experience and more specifically to

develop mutual research interest collaboration.

Many countries in the world are projected to be leading economic countries in the

next five years. Over 30 papers from 4 countries echoing the conference theme

“Transforming Business in Emerging Markets” reflect that management, business

research and business practices are evolved through the globalization.

We hope this conference to be successful and become an important and valuable

resources under your contribution and participation. Finally, on behalf the organizing

commitee members, i hope and i am sure you will have fruitful discussion and successful

meeting, wish you all have a pleasant and enjoyable day in bengkulu and looking

forward to seeing you in person.

Ananda Sabil Hussein, PhD.

2015 Program Chairman


v

2015 Program Acknowledgements

Conference Chairman

Ir. M. Nashsyah, MM, MT

University of Bengkulu

Program Chairman

Ananda Sabil Hussein, Ph.D

University of Brawijaya, Indonesia

Conference Editorial Board

Prof. Armanu Thoyib, Ph.D University of Brawijaya, Indonesia Prof. Candra Fajri Ananda, Ph.D. University of Brawijaya, Indonesia Prof. Ahmad Erani Yustika, Ph.D

University of Brawijaya, Indonesia Prof. Iwan Triyuwono, SE., Ph.D. University of Brawijaya, Indonesia

Prof. Dr. Eko Ganis S.,Ph.D. University of Brawijaya, Indonesia

Prof. Dr. Kamaludin University of Bengkulu Prof. Dr Azlina Azizan

University of Pahang, Malaysia

Dr. Rachata Channoi Burapha University, Thailand

Dr. Hung-Che Wu Nanfang College of Sun Yat-Sen University, China

Dr. Goerge Wu Xiamen University, Taiwan

Willy Abdillah Ph.D University of Bengkulu

Dr. Sumiati University of Brawijaya, Indonesia

Dr. Fatchur Rohman University of Brawijaya, Indonesia

Dodi Wirawan Irawanto, Ph.D University of Brawijaya, Indonesia

Conference Administrator

Dr. Sumiati

Dr. Noermijati

Radityo Putro Handrito, MM.

Ikhtiara Kaideni Isharina, MM

Rahaditya Yunianto, MM

Taufiq Ismail, MM

Sigit Pramono, MSc.

Nadiyah Hirfiyana Rosita, MM.

Program Assistants

Davinindya Giffar

Herdian Khusna

Sponsors

Institutions: University of Brawijaya, University of Bengkulu, University of Dehansen

Bengkulu

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THE RELATIONSHIP BETWEEN PROPERTY STOCK PRICES AND MACROECONOMICS VARIABLES: A MALAYSIAN CASE STUDY

MOHD NASHRAF BIN MOHD NASRUDDIN Universiti Tenaga Nasional [email protected]

JAYANTHI DEVATHAS Universiti Tenaga Nasional

[email protected]

KARONA CAHYA SUSENA Universitas Dehasen Bengkulu

[email protected]

ABSTRACT

This paper studies the relationship between property stock prices and macroeconomic variables. The dependent variables in the paper is the average stock price of the property stock market and the independent variable are macroeconomic variables which are House Price Index (HPI), Consumer Price Index (CPI) and Gross Domestic Product (GDP). The data used for property stock prices and macroeconomic variables are quarterly from 2004 to 2014. Regression methods are used to examine the relationship between property stock prices and macroeconomic variable. The result shows that all macroeconomic variables have significant relationship with the property stock price. CPI has a negative impact on property stock price while HPI and GDP have positive impact on property stock price. However, only HPI and CPI shows significant impact. Therefore, the inflation in terms of house and consumer goods' prices can be an indicator on the movement of property stock prices.

Keywords: Property Stock Prices, House Price Index (HPI), Consumer Price Index (CPI), Gross Domestic Product (GDP)

INTRODUCTION Stock market is one of the fundamental components of a free market economy, its

provide companies with access of capital in replace giving investor a portion of ownership in the company (The Economic Times, 2015). Stock market makes a small initial sum of money grow into a large amount. When companies makes profit, stock market investors make capital gain from receiving dividend that the company pays out as well as selling those stocks at profit. The stock market can be split into two main sections the primary market and the secondary market. The primary markets are called as the new issue market. The issues are sold during initial public offering. The secondary markets are where investors purchase securities or asset from other investors than from issuing for the companies themselves. The Kuala Lumpur Composite Index (KLCI) is an example of it.

There are 84 companies listed in KLCI under the property sector. These companies constructs real estate such as factories, buildings, residential houses and apartment. Property stock market shows the share or the capital of the company in a property sector.


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The property stock market describe how well is the company going on in the property sector in Malaysia. This paper focuses on a sample of 10 counters from that sector.

Macroeconomic is a field of economics that deals with the performance, structure, behavior and decision making of an economy as a whole (Blaug, Mark, 1985). There are many economy indicators to indicate the economic development in a country. The indicators used in this paper are Gross Domestic Product (GDP), Household Income (HI) and Consumer Price Index (CPI).

HPI measures the price of residential housing. HPI is measured by averaging price changes in house purchase price including mortgage financing and refinancing (Home Buyer Guidance, 2014). The Consumer Price Index (CPI) is an indicator of changes in consumer prices experienced by consumers. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers (Statistics Canada, 2015). Meanwhile, GDP measures a nation’s total economic activity. It represent the monetary value of all goods and services produce in nation’s geographic borders in a specific time. In summary, GDP is calculated by adding up the consumer, government expenditure, investment and net export. (Department of Statistics Malaysia, 2015).

This paper attempts to understand the relationship between macroeconomic variables and the movement of property sector stock prices. There is a need to understand this relationship since there is a lack of literature that study this issue particularly in a developing country such as Malaysia.

LITERATURE REVIEW Exchange Rate

According to Timothy J Brailsford (2011), local factors rather than global factors are the primary source of equity return variation in these markets. This seeks to deal with the question of whether local macroeconomic variables have clarifying power over stock returns in emerging markets. From this research, the results have implications for international investors as they suggest that the benefits from diversification are enhanced when the allocation of funds is spread across. This study found that exchange rate is significant in their association with emerging equity return.

Ramin Cooper Maysami, Lee Chuin Howe, and Mohamad Atkin Hamzah (2004) examine this issue in the context of Singapore. They examined long-term equilibrium relationships between selected macroeconomic variables and the Singapore stock market index (STI), as well as with various Singapore Exchange Sector indices—the finance index, the property index, and the hotel index. The study concludes that the Singapore’s stock market and the property index form co-integrating relationship with exchange rate.

GDP Many studies seem to support the hypothesis of a relationship between GDP and

property stock prices. In Kenya, from 2000 Q1 to 2010 Q4, David OchiengAkumu (2014) found that there is a positive effect of GDP on house prices. This imply that increasing GDP encourages the consumptions of durables including housing property goods. As the economy grows many Kenyans are able to afford the purchase of residential houses.


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Guneratne Wickremasinghe (2011) examined the causal relationships between stock prices and macroeconomic variables in Sri Lanka, in order to examine the validity of the semi-strong form of the efficient market hypothesis. The results indicate that there are both short and long-run casual relationships between stock prices and GDP.

Inflation It seems that inflation do affect portfolio return. Tarika Singh, Seema Mehta, and M. S.

Varsha (2010) analyse several stock portfolios. They found that inflation rate, among other variables, had negative relationship with the portfolio returns. This finding was concurred by Nafeesa Yunus (2012) in a study that involved ten developed nations. The finding specifically indicated that inflation induced a positive response towards property stocks return.

METHODS The data’s used in this study are collected from annual reports of companies in Bursa

Malaysia in the form of 11 years time series from 2004 to 2014. This study focuses on 10 companies under the property sector in Malaysia. This study uses time series data for 11 years from 2004 to 2014. Property stock price is used as dependent variable while GDP, HPI and CPI are independent variables. The regression model is as follows:

𝑷𝒓𝒊𝒄𝒆𝒕 = 𝜷𝟎 + 𝜷𝟏𝑮𝑫𝑷𝒕 + 𝜷𝟐𝑯𝑷𝑰𝒕 + 𝜷𝟑𝑪𝑷𝑰𝒕 + 𝜺 (1)

Where Price refers to property stock price and ε refers to error term.

Table 1 reports the summary statistics for the three independent variables while Table 2 reports the summary statistics for the stock counters used in this study.

Table 1. Descriptive Statistics for independent variables

Independent Variables

N Minimum Maximum Mean Std. Deviation

HPI 44 112.80 213.60 146.4568 31.81302

CPI 44 84.52 111.67 98.0204 7.93799

The descriptive statistics above shows the summary for the independent variables. There are 44 observations over the duration of the study. The three macroeconomic variables are House Price Index (HPI), Consumer Price Index (CPI), and Gross Domestic Product (GDP). The maximum value for HPI is 213.60 and the minimum is 112.80 while for CPI, the highest and lowest reading ever recorded are 111.67 and 84.52 respectively. The highest GDP value is RM289 billion.


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Table 2: Descriptive statistics for stock counters

Stock Counters

N Minimum Maximum Mean Std. Deviation

CVB 44 .50 3.19 1.1769 .79193

CCDO 44 .77 3.30 1.5306 .70920

DD 44 1.23 3.76 1.8343 .59301

EAST 44 .39 2.73 1.3399 .60633

MKH 44 .50 4.04 1.2621 .87860

MSGB 44 .20 1.78 .9055 .47782

SPSB 44 1.45 4.20 2.7970 .84761

SHL 44 .89 3.61 1.5259 .50937

SPR 44 1.97 6.03 3.3916 .98437

KSL 44 .30 2.34 .8068 .36290

Valid N (listwise) 44

The descriptive statistics above shows the summary for the property stock counters used in this study. The highest mean stock price is RM3.39 of SPR. The cheapest stock by average is KSL, trading at RM0.81. As for the Standard Deviation, SPR stock has the biggest deviation at RM0.98 while the lowest standard deviation value is RM0.36 shown by the KSL stock.

Table 3. Regression analysis result

Independent

variable

Coefficient

Std. Error

Sig.

HPI

2.460

1.501

0.000

CPI

-5.118

-1.245

0.004

GDP

0.723

0.575

0.151

Table 3 shows the result of the multiple regression analysis. From the analysis result, HPI and CPI coefficients are significant, indicating that HPI and CPI affect property stock price. A 1% increase in HPI will cause a 2.46% decrease in property stock price. A 1% increase in CPI,


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on the other hand, will cause a 5.12% decrease in property stock price. Meanwhile, does not have a significant relationship with property stock price.

Like the research model can be constructed as:

𝑷𝒓𝒊𝒄𝒆𝒕 = 𝟏. 𝟐𝟎𝟏 + 𝟎. 𝟕𝟐𝟑𝑮𝑫𝑷𝒕 + 𝟐. 𝟒𝟔𝑯𝑷𝑰𝒕 − 𝟓. 𝟏𝟏𝟖𝑪𝑷𝑰𝒕 + 𝜺 (2)

CONCLUSION As conclusion, the result shows that HPI and CPI are significant with SP, but GDP had no significant impact to SP. Comparing with previous studies, Kim Hiang Liow, Muhammad Faishal Ibrahim and Qiog Huang (2005) explains that there is co-integrating relationship with changes in the short and long term macroeconomic variable. Moreover, study carried by Tarika Singh, Seema Mehta and M.S Varsha (2010) shows that Exchange rate and GDP had affect the return of all portfolios. Guneratne Wickremasinghe (2011) indicates that there are relationship between stock price and GDP which is not similar to this study. A study carried out by Nafeesayunus(2012) shows conflicting finding to this study where GDP has a positive relationship towards property stock return. Meanwhile, David Ochieng Akumu (2014) indicated there is a positive effect by GDP meanwhile in this research there is no effect by GDP towards the property Stock Prices.

This research only focused on the property stock market in Malaysia to examine the relationship between property stock markets and macroeconomic variable. Future research can include other segments of the stock market such as construction or plantation. Furthermore, future studies can also include other macroeconomics variables other than House Price Index, Consumer Price Index and Gross Domestic Product. Lastly, future researchers can conduct a causal relationship study in order to identify whether macroeconomics variables affect property stock prices or vice versa.

REFERENCES

Akumu D O, (2014) the Relationship between Selected Macro Economic Variable and Residential Housing Property in Kenya.

Christopher M.B, Timothy, J.B & Vincent J.H (2011), Selecting Macroeconomic Variables as Explanatory Factors of Emerging Stock Market Return.

Liow K.H., Ibrahim, M.F., & Huang, Q, (2005), Macroeconomic Risk Influence on Property the Stock Market

Liow K.H., & Huang, Q, (2005), Interest Rate Risk and Time Varying Excess Return for Asian Property Stock.

Maysami R.C., Howe, L.C., &Hamzah, M.A., (2004) Relationship between Macroeconomic Variables and Stock Market Indices: CointegrationE vidence from Stock Exchange of Singapore’s All-S Sector Indices

Tarika S. Seema, M. & M.S Varsha (2011), Macroeconomic Factors and Stock Return: Evidence from Taiwan

Wickremasinghe G, (2011) Casual relationship between Stock Market and Macroeconomic Variables in Sri Lanka.


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West T, & Worthington, A. C, (2005) Generalized Autoregressive Conditional Heteroscedasticity in Mean (GARCH-M) model to consider the Effect of Macroeconomic Factors on Australian Property.

Yunus N (2012) Dyanamic Interaction among Securitized Property Market, Stock Market and the Key of Macroeconomic Variable.

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