Abstract
The aims of this study are to analyze the implication of Tax Amnesty which influences the Investment Decisions and Return on Equity (ROE) on Stock Price and to give an information that Tax Amnesty influences the profitability of all companies and also the investor decision to buy stock in Index LQ45. Investment decisions are projected from PER (Price Earnings Ratio) and Profitability from ROE. Based on the data obtained, tax amnesty does affect the 3 variables studied. This is evident from the occurrence of changes in PER and ROE whereby when the imposition of tax amnesty PER and ROE has decreased almost in every company shares in the LQ45 index, in addition to the stock price has increased significantly. This makes it clear that political policy affects the state of the capital market.
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