PENGARUH FREE CASH FLOW DAN PROFITABILITAS TERHADAP KEBIJAKAN LIABILITAS PADA PERUSAHAAN FOOD AND BEVERAGE

Abstract

This research is aimed to examine the influence of free cash flow and profitability to the liability policy on food and beverages sector companies which are listed in Indonesia Stock Exchange. The population is food and beverages sector companies which are listed in Indonesia Stock Exchange (IDX) in 2013-2016 periods. The sample collection technique has been run by using purposive sampling method and based on the predetermined criteria 13 companies have been selected as samples and the total numbers of observations are 52 observation. The result shows that free cash flow give positive and significant influence to the liability policy. It shos that when the free cash flow of is high, the company will increase corporate debt due to high free cash flow, the stockholders desire to share in the form of dividend. Profitability give negative influence to the corporate liability policy. It shows that when the return on equity which has been generated by the company is high, it will reflect the corporate ability in generating high profit for its stockholders.
Keywords : free cash flow, profitability, liability obligation