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

Abstract

Dividend policy is a policy which determine how much net profit which is going to be shared to shareholder as dividend and be reinvested within company as retained earnings. Therefore, this research aimed to examine the effect of free cash flow, leverage, and profitability on dividend policy. The data collection technique used purposiv sampling, with 68 samples from 17 LQ-45 companies which were listed on Indonesia Stock Exchange during 2015-2018. Moreover, the data were secondary. Meanwhile, the instrument in data collection technique was documentation. Furthermore, the data analysis technique used descriptive statistics, classical assumption, multiple linear regression and hypotthesis testing with IBM SPSS Statistics 22. The research result concluded as follows: (a) Free Cash Flow (FCF) did not affect dividend policy. It meant, how small or big the FCF Would not decrease or increase its dividend return to shareholder; (b) Leverage (DER) had negative effect on dividend policy. this meant, the higher the company leverage, the lower the dividend return was; (c) Profitability (ROE) did not affect the dividend plicy. In other words, the amount of profitability did not affect the dividend return to shareholder.
Keywords: free cash flow, leverage, profitability, dividend policy