87
spreads. The result is consistent with the research that had conducted by Ho 2014, where the current account balance variable has a negative sign
toward CDS spreads. 2. Based on the panel data regression that has been conducted, the result of
adjusted R
2
test analysis is 0.264200. It means that the independent variables that is represented by GDP growth, inflation, unemployment,
importGDP, and current account balance can explain the dependent variable which is Credit Default Swap spreads with the accuracy of
26.42. While the rest of 73.58 is explained by the other variables that are not mentioned on this research.
B. Suggestion
Based on the conclusion that had elaborated above, the suggestion can be stated as follows:
1. For Investors
For the investors, especially the bond investor’s who want to buy the
Credit Default Swap as a hedging instrument, need to pay attention on the macroeconomic variables that might affect the movement of Credit
Default Swap spreads, especially inflation, unemployment and current account balance which are significantly affecting the Credit Default Swap
spreads.
88
2. For academics
The result of this research “The Impact of εacroeconomic Variables toward Credit Default Swap Spreads
” can be used to give the additional insight to the academics. Thus, the academics can conduct the more
appropriate research relates to the impact of macroeconomic variables toward Credit Default Swap spreads.
3. For Government
This research is expected to gives a consideration for the government before conducting the policies especially related to the macroeconomic
variables, and consider the impact of the macroeconomic policies that might impact the market, especially the financial market.
C. The Limits of the Research and Recommendation
This research have some of limitations that might be restrict the scope of the research. The boundaries are:
1. The observation period is limited to the period of 2009-2013. 2. This research is not consider on the other factors that expected have an
impact toward the Credit Default Swap Spreads. 3. This research is limited the Asian countries only for 9 countries and
European countries only for 5 countries. The recommendation that might be used for enhance the research, are:
89
1. For further Researchers
a. The observation period should have to be expended in order to more accurately observe the impact macroeconomic variables
toward Credit Default Swap spreads. b. The observation period should have to enlarged not only annually,
it can be quarterly, or monthly. c. The other factors that might affecting the Credit Default Swap
spreads should have to included in the next research in order to make the result of the research to be more accurate.
d. The population of the research further should have to be add, not only Asia and Europe, but also the other region such as America,
Africa, etc.
2. For the investors
Investors can use the GDP growth, inflation, unemployment, importGDP, and current account balance information as one of the
resources for make a consideration on Credit Default Swap spreads. However, remember that there are a lot of factors except the five
variables above that might affecting the Credit Default Swap spreads, the researcher is recommend to the investors to consider on the other
factors that might impact the Credit Default Swap spreads before taking the hedging decision.
