The effect of consumer boycotts and macroeconomic variables on stock prices in Israel-affiliated firms in Indonesia: Is the media a moderator?

This study examines the effects of consumer boycotts, BI rate, and exchange rate on the stock prices of Israel-affiliated firms in Indonesia, and investigates whether media coverage moderates these relationships. Using monthly data from January 2019 to December 2024 (360 observations) sourced from Bank Indonesia and Investing.com, the analysis applies panel data regression and moderation regression analysis (MRA). The results indicate that consumer boycotts and exchange rates have a significant negative impact on stock prices, while the BI rate exerts a positive effect. However, media coverage does not significantly moderate the relationship between boycotts and stock prices. These findings highlight that public boycotts driven by geopolitical affiliations can generate non-financial risks and influence stock performance and investor behavior. Accordingly, Bank Indonesia should not only consider price stability in setting interest rate, but also consider the impact on financial markets and investor sentiment. Furthermore, the government is encouraged to strengthen coordination between macroeconomic policy and capital market supervision, while promoting investor literacy regarding non-financial factors such as reputation and socio-political dynamics.