Stock Price Breakdown by Inflation, Account Turnover, and Interest Rates: A Case Study of Companies Listed on the LQ45 Index

Abstract

­Objective: The purpose of this study is to analyze stock inflation, rupiah stock price, and stock price interest rate and finally analyze the effect of inflation, rupiah price, and interest rate together. Theoretical framework: Recent literature has reported the annual results of companies that use a data analysis technique is panel data regression. From the results of the study, it can be concluded that in some cases inflation, exchange rates, and interest rates have a significant effect on stock prices. Although both impact the stock price simultaneously and the adjusted R-squared value of 88.93 n is 11.07%, this is influenced by other factors not considered in this study. Design/Methodology/Approach: This type of quantitative descriptive research uses a purposive sampling method from a sample of LQ45 companies consisting of 45 companies, resulting in 225 observations for each variable. Findings: The results of research that have been conducted found that partial inflation, exchange rates, and interest rates have a significant and significant effect on stock prices, both have an influence on stock prices and have an R Square value adjustment of 88.93% and 11.07% influenced by other factors that are not in this study. Research, practical & implications social: The study's recommendations are aimed at companies and other researchers. It is expected that the company will produce material that increases knowledge and understanding of stock prices so that management can plan mechanisms to run company operations well. At the same time, researchers are further expected to be able to add other variables that can affect stock prices, using the same or different methods, as well as add different populations and samples to arrive at conclusions that support previously established theories and concepts and reinforce them. Originality/Value: Based on the analysis presented, the author can conclude the following: 1) The first hypothesis is proven, namely that inflation has a positive and significant effect on the stock price of LQ45 companies. 2) Another hypothesis is also proven, namely that the exchange rate has a positive and significant effect on the share price of the LQ45 company. 3) The latter hypothesis also suggests that interest rates have a positive and significant influence on the share price of LQ45 companies. All variables have a positive and significant influence simultaneously.