The Effect of Interest Rate, Inflation, EPS, DER, and DPR on LQ45 Stock Prices

Abstract

This research was motivated by fluctuations in stock prices on the LQ45 index, which are influenced by macroeconomic factors and corporate fundamentals. The objective of this study is to analyze the effects of interest rates, inflation, Earnings Per Share (EPS), Debt-to-Equity Ratio (DER), and Dividend Payout Ratio (DPR) on the stock prices of LQ45 companies for the period 2020-2024. The research method employs a quantitative approach using panel data regression analysis with the EViews software on 120 data observations. The partial results indicate that interest rates and the DER have a negative and significant effect on stock prices, while EPS has a positive and significant effect. Conversely, inflation and the DPR do not have a significant effect. In conclusion, the market value of LQ45-listed companies is highly sensitive to the direction of monetary policy and is determined by internal fundamentals related to real profitability and leverage risk management. These findings highlight the importance of optimizing a company's internal performance to maintain stock price stability.