The Effect Of Internal And External Factors On Stock Prices (Empirical Study Of LQ45 Companies For The 2018-2022 Period)

With stock market prices fluctuating, it indicates the importance of an investor who puts his funds in stock-based investment instruments to predict future stock price movements, so as to minimize potential losses. The prevailing stock price on the stock exchange is influenced by internal and external factors. This study aims to determine the influence of internal factors that are proxied using Return on Assets (ROA) and Debt to Equity Ratio (DER) and external factors that are proxied using inflation and exchange rates on the stock price of LQ45 companies. Sampling was carried out using the purposive sampling method. The sample of this study is 19 LQ45 companies for the 2018-2022 period. Data analysis uses classical assumption tests and multiple linear regression. The results of this study show that the independent variables of Return On Assets (ROA), Debt to Equity Ratio (DER) and Exchange Rate partially do not have a significant effect on stock prices. Meanwhile, inflation partially exerts a significant influence on stock prices.