Do Global and Internal Factors Drive the Stock Prices of LQ45 Companies in Indonesia?
Journal Title: Journal of Economics, Finance and Management Studies - Year 2025, Vol 8, Issue 03
Abstract
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.
Authors and Affiliations
Gusni , Siti Komariah , Suskim Riantani,
Keywords
Related Articles
- EP ID EP761680
- DOI 10.47191/jefms/v8-i3-33
- Views 20
- Downloads 0
Digitalization and the Future of Work: Economic Development, Labour Markets and Education in a Rapidly Changing World
The rapid pace of digitalization is transforming the world of work, posing significant challenges and opportunities for economic development, labour markets, and education. This paper explores the impact of digitalizatio...
The Effect of Inflation, Rupiah Exchange, Interest Rate, Earning Volatility and Cash Holding on Stock Prices of Manufacturing Companies Listed on IDX
Researchers are looking at how inflation, rupiah exchange rates, interest rates, earnings volatility, and cash holdings influence stock prices. This is a quantitative research that utilizes secondary data from the Indone...
Users' Perception of NFC Technology in Digital Payment Transactions in Indonesia
Near Field Communication (NFC) technology is growing and starting to be used on mobile devices such as smartphones. However, there are still differences in the factors of user perception and acceptance of the use of the...
Stakeholder Collaboration in Sustainable Tourism Development in Tana Toraja, South Sulawesi Province, Indonesia: Efforts to Improve Tourist Visits
The primary objective of this study is to assess the impact of stakeholder collaboration, implementation of sustainable tourism principles, supportive policies, and regulations on the enhancement of tourist visitation. T...
Knowledge Transfer in Multinational Corporation in Nigeria (Processes and Enablers)
This study carefully searched secondary data sources on the processes and enablers of knowledge transfer in Multinational Corporation in Nigeria. Through knowledge based theory and Agency Theory the independent variables...