PENGARUH FREE CASH FLOW, PROFITABILITAS, LIKUIDITAS DAN LEVERAGE TERHADAP KEBIJAKAN DIVIDEN

Abstract

This research aimed to examine the effect of free cash flow, profitability, liquidity and leverage on dividend policy. While, the population was LQ-45 companies which listed on Indonesia Stock Exchange (IDX) during 2014-2018. The research was quantitative. Moreover, the data were secondary which taken from Indonesia Stock Exchange (IDX) www.idx.co.id Furthermore, the data collection techniques used purposive sampling. In line with, there were 12 companies as sample with 60 observations in 5 years. Additionally, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Services Solutions) 23. The research result concluded free cash flow did not affect dividend policy. Likewise, leverage did not affect dividend policy of LQ-45 companies. On the other hand, profitability had positive effect on dividend policy of LQ-45 companies. Similary, liquidity had positive effect on dividend policy of LQ-45 companies. In brief, free cash flow, profitability, liquidity and leverage mutually affected dividend policy of LQ-45 companies.
Keywords: free cash flow, profitability, liquidity, leverage, dividend policy