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

Abstract

This research aimed to examine the effect of Free Cash Flow, profitability, liquidity, and Leverage on the dividend policy. The variable of Free Cash Flow was measured by Ross (2000), the variable of profitability was measured by Return on investment (ROI), the variable of liquidity was measured using the Current ratio (CR), the variable of Leverage was measured by Debt equity ratio (DER) and the variable of dividend policy was measured by Dividend Payout Ratio (DPR). The research was quantitative. The population was Food and beverage companies listed on the Indonesia Stock Exchange during 2017-2019. Furthermore, the research sample used a purposive sampling method i.e., a sample selection method with determined criteria. Moreover, there were 10 samples with 3 months of observation; therefore, it obtained 30 data. In addition, the research data analysis technique used multiple linear regression analysis with SPSS 25. The result showed that the variables of Free Cash Flow, profitability, and liquidity had a positive effect on the dividend policy. However, the variable of Leverage had a negative and insignificant effect on the dividend policy.