Do Global and Internal Factors Drive the Stock Prices of LQ45 Companies in Indonesia?

Stock prices change daily, driven by a variety of global and internal factors. This purpose of this study is to gather empirical evidence on how global factors (Fed Fund Rate, oil prices) and internal factors (dividend policy, profitability, firm size) drive stock prices of LQ45 companies listed on the Indonesian stock market. To meet the research objectives, secondary data from 2018 to 2023 was utilized for 17 LQ45 companies chosen through purposive sampling methods. Panel data regression methods have been employed to analyze how both global and internal factors affect company stock prices. The research findings indicate that among global factors, only oil prices negatively impact stock prices, whereas the Fed Fund Rate has no influence. For internal factors, only profitability and firm size positively drive stock prices, whereas dividend policy has no effect. The outputs of this study are valuable for investors as they provide insights into both global and internal factors of a company, helping them make informed decisions when selecting the right stock investments in the capital market.