Abstract: This study aimed to investigate the effect of funding decisions and dividend policy on firm value and its implications for stock returns in LQ45 companies listed on the Indonesia Stock Exchange, which amounts to 45 companies, with 121 research observations using the unbalanced panel data. The data analyzed are secondary data using path analysis. The results show that funding decisions and dividend policies affect firm value, funding decisions and dividend policies affect stock returns, and firm value does not affect stock returns. Firm value is able to mediate the influence of funding decisions and dividend policies on stock returns.