PENGARUH FREE CASH FLOW, INVESTMENT OPPORTUNITY SET DAN LEVERAGE TERHADAP KEBIJAKAN DIVIDEN

Abstract

This research aimed to examine the effect of Free cash flow (FCF), Investment Opportunity Set (IOS), and leverage on divident policy through yearly financial report at property company stated in Indonesia Stock Exchange. The sample collecting technique in this research used purposive sampling method at property company stated in Indonesia Stock Exchange 2014-2016 and the company which share the divident during the years. The samples were 24 companies per year which fullfiled the criteria. In addition, the analysis method used multiple linier regression analysis. According to the research result, it concluded that (a) free cash flow had positive effect on divident policy since the company had cash surplus whic was used for the wealth of shareholders; (b) Investment Opportunity Set did not affect on the divident policy, so that how low or high the IOS score of company did not affect on the divident which was given; (c) leverage had negative effect on the divident policy as high leverage decreased the company profit; thus, the amount of divident would be low also. This condition was caused since the profit was to be used to pay debts.
Keywords: Free Cash Flow, Investment Opportunity Set, Leverage, Divident Policy