PENGARUH ARUS KAS BEBAS, PROFITABILITAS DAN UKURAN PERUSAHAAN TERHADAP KEBIJAKAN UTANG

Abstract

This research is meant to test the influence of free cash flow, profitability and firm size to the debt policy to the
consumer goods sector manufacturing companies which are listed in Indonesia Stock Exchange. The data is the
secondary data in the form of annual statement. The population is all consumer goods sector manufacturing
companies which are listed in Indonesia Stock Exchange in 2012-2014 periods. The sample selection has been done
by using purposive sampling technique with certain criteria and 27 companies which have met the criteria so 81
observations have been obtained. The data analysis has been carried out by using multiple linear regressions with
SPSS software 20th version. Based on the research result it can be concluded that free cash flow and firm size has
positive influence to the debt policy, It is due to the free cash flow and the firm value is getting high, the activity
which will increase the firm value which is related to the use of debt policy is getting high as well. Profitability does
not have any negative influence to the debt policy, it is due to the fact that the company cannot avoid the use of debt
for the source of funding because companies require large fund for the their investment and high profitability level
means that the company can generate high profit larger than their capital which has been invested on their assets
which can give easiness in order to gain the trust of the creditors to give their loan to the company even though the
pecking order theory stated that the manager more prefer internal fund (retained earning) than external fund (debt).
Keywords: Debt policy, free cash flow, profitability, firm size.