INVESTMENT OPPORTUNITY SET SEBAGAI PEMODERASI PENGARUH FREE CASH FLOW DAN PROFITABILITAS TERHADAP KEBIJAKAN DIVIDEN

Abstract

This research aimed to examine and analyze the effect of free cash flow and profitability with the investment opportunity set as moderated variable, on the dividend policy. The population was consumer goods manufacturing companies which were listed on Indonesia Stock Exchange 2013-2017. While, there were 18 out 42 companies which were collected as sample using purposive sampling. Moreover, the data used secondary which in the form of annual report of consumer goods manufacturing companies 2013-3027. Furthermore, the instrumen used documentation. In addition, the data analysis use multiple linear regression. The research result concluded free cash flow, as well as profitablity, had positive effect on the dividend policy. On the other hand, the investment opportunity set had negative effect on the dividend policy. It meant, from the residual test result, the investment opportunity set could not moderate the effect of free cash flow on the dividend policy. However, it could moderate the effect of profitability on the dividend policy.
Keywords: free cash flow, profitability, investment opportunity set, dividend policy.