ANALISIS PENGARUH FREE CASH FLOW, PROFITABILITAS, DAN ASET YANG DIJAMINKAN TERHADAP KEBIJAKAN DIVIDEN

Abstract

This research aimed to examine and analyze the effect of free cash flow, profitability, and collateralizable assets on dividend policy. The population that used in this research is banking companies which listed on the Indonesian Stock Exchange in the 2013-2018 period. The sampling technique used purposive sampling. Based on the sample selection criteria, there were 9 companies with a population of 54 company data during the 2013-2018 period. The analysis method that been used is multiple linear regression analysis and classical assumption test. The result of this research indicates that free cash flow has a negative effect on devidend policy, the small value of free cash flow can result in low agency costs so that it is not taken into account in dividend distribution. Meanwhile profitability has a positive effect on policy, the higher the profitability value is the return on assets owned by the company, the higher the devidends to be distributed and collateralizable assets have a negative effect on dividend policy, the lower the amount of collateralizable assets owned by the company will increase the conflict of interest between shareholders and creditors, amd creditors will prevent the company from paying dividends.
Keywords: free cash flow, profitability, collateralizable assets, dividend policy