PENGARUH FREE CASH FLOW, KEPEMILIKAN MANAJERIAL, KEPEMILIKAN INSTITUSIONAL, DAN PROFITABILITAS TERHADAP KEBIJAKAN HUTANG

Abstract

This research aimed to analyze and examine free cash flow, managerial and instutional ownership, and profitability on the debt policy. The population was manufacturing companies which go public and were listed on Indonesia Stock Exchange. Moreover, the research was quantitative and used purposive sampling. In line with, there were 22 companies as sample, with year of observation 2012-2017. Furthermore, the data were secondary, in the form of financial statement. In addition, the data analysis technique used multiple linear regression with SPSS 22. The reseach result concluded free cash flow has a positive effect on debt policy, indicating that companies with large free cash flow will increase the level of debt, managerial ownership has a positive effect on debt policy, indicating that the presence of managerial ownership will align the interests of management and owners, and institutional ownership has a positive effect on debt policy, indicating that the presence of institutional ownership is expected to reduce debt. While profitability has a negative effect on debt policy, indicating that at a low profitability level the company will use debt and vice versa at a high level of profitability the company will reduce the use od debt.
Keywords: Free Cash Flow, Managerial Ownership, Institutional Ownership, Profitability, Debt Policy.