Abstract
This study aims to determine the effect of free cash flow, liquidity and foreign ownership on debt policies in companies listed on the Indonesia Stock Exchange. The samples used in this study are basic and chemical sector companies listed on the Indonesia Stock Exchange for the 2012-2016 period. The independent variables in this study are free cash flow, liquidity and foreign ownership. The control variable in this study is asset structure. The research method uses a quantitative approach with multiple linear regression analysis techniques. The result of this study is that liquidity affects debt policy because the higher the level of liquidity of the company, the greater the company's ability to pay debts. Foreign ownership affects debt policy because foreign ownership can improve the performance and supervision of managers in the company, especially in determining funding decisions including debt policy, while free cash flow has no effect on debt policy, this is because companies tend to prioritize the use of free cash flow funds for investment and operational needs of the company. This research can be used as a reference for companies in determining funding decisions through debt policy so that the funding decisions taken are more effective.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
