Effect Of Free Cash Flow Research Articles

Factors Affecting Dividend Policy In Companies In The Era of Covid-19 Pandemic

This study aims to examine the effect of free cash flow, profitability, collateralizable asset and debt policy on dividend policy. The method of data analysis in this study uses the method of multiple regression analysis on Eviews program assistance and data collection method using purposive sampling. The data used are secondary data obtained from 81 data financial statements of sector property, real estate and building construction companies listed on the Indonesia Stock Exchange in 2019-2021. The results of this study indicate that the free cash flow and collateralizable assets variable has a positive influence on dividend policy, while profitability and debt policy variable has no postitive effect on dividend policy

Effect of free cash flow on the profitability of Nepalese commercial banks

This study investigates the impact of free cash flow on the profitability of Nepalese commercial banks. The study analyzes secondary data of 20 commercial banks from 2016/17 to 2020/21, using return on assets and return on equity as dependent variables, and free cash flow, cash flow from investing activities, cash flow from financing activities, dividend payout ratio, current ratio, and bank size as independent variables. The study finds that free cash flow has a positive effect on return on assets and return on equity, while leverage has a negative effect. Cash flow from investing and financing activities has a positive effect on return on assets, and the dividend payout ratio has a positive effect on return on equity. Bank size also has a positive effect on both return on assets and return on equity. However, the current ratio has a negative effect on both return on assets and return on equity. These findings suggest that commercial banks in Nepal can improve their profitability by effectively managing their free cash flow, cash flow from investing and financing activities, dividend payout ratio, and bank size, while minimizing their leverage and current ratio.

FAKTOR-FAKTOR YANG MEMPENGARUHI KEBIJAKAN HUTANG DENGAN VARIABEL MODERATING PADA PERUSAHAAN MANUFAKTUR

This study aims to determine the effect of free cash flow, management ownership, and institusional ownership to the debt policy with the investment opportunity set as a moderating variable of manufacturing companies listed on the Indonesia Stock Exchange on period 2017 to 2019. Variables used in this research is free cash flow, management ownership, and institusional ownership as an independent variable, debt policy as the dependent variable and the investment opportunity set as a moderating variable. This study was performed on companies listed on the Indonesia Stock Exchange. This research was conducted at 24 companies that meet the criteria of a sampling of 171 companies listed in the Indonesia Stock Exchange. The research data are secondary data from the annual financial statements published 24 companies in Indonesian Stock Exchange.

Free Cash Flow, Financial Distress, and Earnings Management: The Moderating Role of Independent Commissioner

This study examines the effect of free cash flow and financial distress on earnings management. In addition, this study also examines the role of the independent commissioner as a moderator in the relationship between the independent and dependent variables. The research data is obtained from the financial statements of transportation sub-sector companies in Indonesia listed on the Indonesia Stock Exchange (IDX) for 2018-2020. Based on the purposive sampling method, the final samples used in this study amounted to 87 observations. This study concludes that free cash flow is negatively associated with earnings management, while financial distress is positively associated with earnings management. This study also finds that independent commissioners strengthen the negative effect of free cash flow on earnings management, and independent commissioners weaken the positive effect of financial distress on earnings management. This study indicates that the Financial Services Authority (OJK) needs to carry out supervision and improvement related to the provisions on the recruitment of independent commissioners to improve corporate governance and investor protection.

PENGARUH ARUS KAS BEBAS, STRUKTUR KEPEMILIKAN, DAN PERTUMBUHAN PERUSAHAAN TERHADAP MANAJEMEN LABA

The purpose of this study is to provide empirical evidence about the effect of free cash flow, ownership structure, firm’s growth, return on assets, financial leverage, firm size, firm age, and audit quality on earnings management. The ownership structure on this study consists of managerial ownership and institutional ownership. Samples of this research were selected based on the purposive sampling method and resulted in 122 nonfinancial companies listed on Indonesia Stock Exchange (IDX) during the period of 2017-2019. The data obtained from these samples were analyzed using multiple regression analysis. Earnings management in this study computed using the modified Jones Model 1995. The results of this research show that free cash flow, firm’s growth, return on assets, financial leverage, and firm size has effect on earnings management, while ownership structure (managerial ownership and institutional ownership), firm age, and audit quality have no influence on earnings management.

Analisis Faktor-Faktor yang Mempengaruhi Capital Expenditure

This study aims to determine the effect of free cash flow, dividends, interest expense, and firm size on capital expenditures. This study uses a sample of 68 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2019 period. The software used is Eviews version 12 with a purposive sampling method. This study uses a panel of regression data with three models, namely the common effect model, the fixed effect model, and the random effect model. After testing, the random effect model is the chosen model. The results of this study indicate that free cash flow and firm size have a positive and significant effect on capital expenditures. That is, the higher the free cash flow and the larger the size of a company, the higher the amount of capital expenditure. In addition, dividend and interest expenses have a positive and insignificant effect on capital expenditures.

THE EFFECT OF FREE CASH FLOW, INVESTMENT OPPORTUNITY SET AND INSTITUTIONAL OWNERSHIP ON DIVIDEND POLICY

This study aims to determine the effect of free cash flow, investment opportunity set, and institutional ownership on dividend policy in manufacturing companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange in the 2016-2020 period. This type of research is quantitative, the data used is secondary data in the form of financial reports obtained through the official website of the Indonesian Stock Exchange. The sample was selected by Purposive Sampling method and obtained sample of 7 companies with the total sample company is 35 units of analysis. The data analysis technique used is panel data regression analysis using the Eviews 10 program data processing. The results show that free cash flow, investment opportunity set and institutional ownership simultaneously have an effect on dividend policy in food and beverage sub-sector manufacturing companies listed on the IDX in 2016-2020. Meanwhile, partially free cash flow and investment opportunity set variables have no effect on dividend policy.

Faktor Yang Berpengaruh Terhadap Manajemen Laba Dengan Komite Audit Sebagai Variabel Moderasi

The purpose of this study is to obtain empirical evidence regarding the effect of free cash flow, corporate size, leverage, and profitability on earnings management, and to see whether audit committee can moderate the effect of leverage and profitability on earnings management in manufacturing companies listed on the Indonesia Stock Exchange during the period of 2017-2019. This research was conducted by taking 77 samples of companies using purposive sampling technique and processed by EViews version 11. Based on the research, the results show that the profitability do not have a significant effect on earnings management, corporate size and leverage has a significant positive effect on debt earnings management, free cash flow has a significant negative effect on earnings management, and lastly, audit committee cannot moderate the effect of leverage and profitability on earnings management.

PENGARUH FREE CASH FLOW, KEPEMILIKAN INSTITUSIONAL, KEPEMILIKAN MANAJERIAL, DAN PERTUMBUHAN PERUSAHAAN TERHADAP KEBIJAKAN HUTANG (Studi Empiris pada Perusahaan Sektor Properti, Real Estate dan Konstruksi Bangunan Yang Terdaftar di Bursa Efek Indonesia)

This study aims to empirically prove the effect of free cash flow, institutional leadership, managerial leadership and company growth on debt policy in property and real estate and building construction sector companies listed on the Indonesia Stock Exchange in 2017-2019. The sample used is 24 companies with a total population of 72. The method used in this study is a quantitative method with a purposive sampling technique. The data analysis used by the author in this study is Descriptive Statistical Analysis and Multiple Linear Regression Analysis. The results of the study prove that partially Free Cash Flow, Institutional Ownership, and Managerial Ownership have an effect on Debt Policy. Meanwhile, the Company's growth has no effect on the Debt Policy. But simultaneously, simultaneously Free Cash Flow, Institutional Ownership, Managerial Ownership, and Company Growth together affect the Debt Policy

PENGARUH FREE CASH FLOW, LIKUIDITAS DAN LEVERAGE TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN MANUFAKTUR SUB SEKTOR FOOD AND BEVERAGES

This study aims to examine the effect of free cash flow, profitability, liquidity and leverage on dividend policy in a simulttan (together) and partially. This research is a research with a quantitative approach. Data collection techniques are carried out based on data sources, namely secondary data, data sources can be obtained from the Indonesia Stock Exchange (IDX) www.idx.co.id. The sampling method uses purposive sampling method. The number of samples in this study was 30 observations in 6 companies within a period of 5 years. The results of this study showed that the signification value of the t test free cash flow of 0.292 > 0.05 stated that it had no effect on dividend policy, the liquidity t test result of 0.404 > 0.05 stated that it had no effect on dividend policy and the result of the t leverage test 0.567 > 0.05 stated has no effect on dividend policy. Jointly, the signification value of hasl test f free cash flow, liquidity and leverage of 0.466 > 0.05 stated that it had no effect on the dividend policy simultaneously. The conclusion for this study is that the variables Free cash flow (X1), Liquidity (X2), and Laverage (X3) have no effect on dividend policy (Y).

The Affect Factors of Earning Management (Case Study on Manufacturing Companies Listed on IDX)

Research on earnings management is very interesting to the attention of researchers, because the results of several previous studies are very diverse, so assumptions and restrictions on the object of research are needed. This study examines the effect of free cash flow, profitability, leverage, firm size, and growth on earning management. The research population was the manufacturing company of metal and the similar sub-sector listed on the Indonesia Stock Exchange in 2017-2020. The sample documentation used a purposive sampling method and obtained ten companies with 40 annual financial statement observations based upon the sample criteria. This research statistically showed that free cash flow, profitability, and growth influence earnings management by using multiple regressions. Meanwhile, leverage and firm size do not influence earning management.

Pengaruh Free Cash Flow terhadap Manajemen Laba: Studi pada Perusahaan Jasa Sektor Property dan Real Estate yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2019

This study aims to determine and analyze the effect of free cash flow on earnings management in property and real estate service sector companies listed on the Indonesia Stock Exchange. Earnings management is measured by discretionary accruals using the Modified Jones Model. The population in this study is 62 property and real estate sectors listed on the Indonesia Stock Exchange for the period 2017 to 2019. Based on purposive sampling, a sample of 20 companies was obtained. The analytical method used is a simple panel data regression analysis method using application eviews 10. The results of this study indicate that free cash flow has a significant positive effect on earnings management.

FREE CASH FLOW, MANAGERIAL OWNERSHIP, AND AGENCY COST: A NONLINEAR EVIDENCE FROM NIGERIAN QUOTED CONSUMER AND INDUSTRIAL GOODS FIRMS

This study focuses on a nonlinear approach in assessing the effect of free cash flow and managerial ownership on the agency cost of firms listed under the Consumer and Industrial Goods sector in the Nigerian Stock Exchange (NSE). Based on the extant theories, firms with high free cash flow are more exposed to agency costs. Existing literature however shows that managerial ownership could moderate this tendency. In this study, we argue that the extent to which managerial ownership moderates the effect of free cash flow on firms’ agency costs is dependent upon the level of the ownership, and thus, the moderation effect is not entirely linear. The study therefore empirically investigates whether free cash flow has a significant positive effect on agency costs; whether managerial ownership has a nonlinear effect on free cash flow; and whether the moderating effect of managerial ownership on the association of free cash flow and agency costs is nonlinear (not the same at different levels [Formula: see text]25% and above 25%). We estimate the panel regression using data from 2009 to 2015 to test three main hypotheses. We measured free cash flow using the cash flow approach and adopted the inverse of asset utilization to proxy for agency costs. The findings reveal that while free cash flow linearly and negatively affects agency costs, managerial ownership has a nonlinear effect on free cash flow and on the effect of free cash flow on agency costs. In line with the findings, this study concludes that managerial ownership is not a straight jacket remedy for tacking problems associated with agency costs that results from having excess free cash flow. Further studies should consider other proxies of agency costs.

Pengaruh Free Cash Flow dan Financial Leverage Terhadap Earning Management dengan Good Corporate Governance sebagai Variabel Moderasi

Earning Management is one of the various efforts that can be made by companies in engineering the numbers in the financial statements so that the company's financial statements can be seen in good condition for investors and other readers. This study aims to determine the effect of free cash flow and financial leverage on earnings management with good corporate governance as a moderating variable in transportation service companies. This study uses data from 26 transportation service companies from 2017-2019 that have been listed on the Indonesia Stock Exchange. The data analysis technique used in this study is the Partial Least Square (PLS) analysis method where PLS analysis is an analytical method that is not based on many assumptions or conditions and can handle many variables at once even though there is multicollinearity in these variables. The results show that free cash flow and financial leverage have no effect on earning management and good corporate governance cannot moderate the relationship between free cash flow and financial leverage on earning management.

Contribution of Investment Efficiency in the Relationship of Free Cash Flow and Firm Value at Indonesia Stock Exchange

The objective of this research is to examine the mediation effect of investment efficiency (ROA) and the moderation effect of Syariah in the relationship of free cash flow on firm value (Tobin q). Research population involved all manufacturing companies at Indonesia Stock Exchange on period 2012-2018. Purposive sampling was used as sampling technique and the obtained sample was 36 companies with total observation of 252. Hypothesis test was conducted with PLS-SEM analysis technique supported by software WarpPLS 5.0. Type of data was data panel with observation period from 2012 to 2018. Several empirical results were obtained. First, free cash flow has positive and significant effect on firm value. Second, free cash flow has positive and significant effect on investment efficiency. Third, investment efficiency has positive and significant effect on firm value. Fourth, Syariah does not have moderation effect in the relationship of free cash flow on firm value. Last, investment efficiency mediates partially the effect of free cash flow on firm value. From these results, several conclusions were made. Firm value can be indirectly affected through intervening variable. Mediation role played by investment efficiency informs that investment efficiency proxied by ROA can alleviate the contradictive results of empirical studies (research gap) concerning the effect of free cash flow on firm value.

Pengaruh Free Cash Flow, Profitabilitas, Kualitas Audit, Leverage, Kebijakan Dividen terhadap Likuiditas Pada Perusahaan Terdaftar di Jakarta Islamic Index

This research aims to test the effect of free cash flow, profitability, audit quality, leverage and dividend policy on liquidity. In this study, the companies studied were companies listed on the Jakarta Islamic Index and listed on the Indonesia Stock Exchange for the period 2016 to 2020. The study used secondary data with a quantitative approach. The number of companies studied by 17 companies in the space of 5 years. The research method used is multiple linear regression analysis using spss 25 application with data analysis techniques used namely normality test, heterocedasticity test, multicollinearity test, multicolutarity test, and multiple linear regression analysis. The results of this study showed that free cash flow had no effect on liquidity, profitability had no effect on liquidity, audit quality had an effect on liquidity, leverage had no effect on liquidity and leverage had no effect on dividend policy.

An Influence of Free Cash Flow and Interaction Effect of Free Cash Flow with ESG Evaluation Information on Credit Rating Scores

기업의 이해관계자들은 잉여현금흐름정보와 ESG평가정보 그리고 기업의 재무건전성을 평가하는 신용평점에 관심이 많다. 따라서 본 연구의 목적은 잉여현금흐름이 신용평점에 어떠한 영향을 미치고 잉여현금흐름과 ESG평가정보의 상호작용효과가 신용평점에 어떤 영향을 미치는 지 검증하고자 한다. 본 연구에서는 ESG평가정보를 1) 통합부문(T), 2) 환경부문(E), 3) 사회부문(S), 4) 지배구조부문(G) 네 가지 특성을 나누어 연구한다. 연구결과를 종합해보면 회귀분석 연구결과는 독립변수들이 신용평점에 미치는 영향을 살펴보면, 첫째, 잉여현금흐름의 회귀계수는 양(+)의 값으로 1%수준에서 유의하게 나타났고, 둘째, 주요관심변수인 잉여현금흐름과 ESG평가 통합부문(ESG1)의 상호작용효과의 회귀계수는 양(+)의 값으로 1%수준에서 유의하게 나타났다. 셋째, 잉여현금흐름과 ESG평가 세부부문(환경, 사회, 지배구조)정보를 살펴보면, ① 잉여현금흐름과 환경부문(ESG2)의 상호작용효과, ② 잉여현금흐름과 사회부문(ESG3)의 상호작용효과, ③ 잉여현금흐름과 지배구조부문(ESG4)의 상호작용효과 각 특성 3가지 회귀계수는 모두 양(+)의 값으로 1%수준에서 유의하게 나타났다. 이러한 결과는 잉여현금흐름 및 잉여현금흐름과 ESG평가정보의 상호작용효과가 높을수록 신용평점에 양(+)의 값으로 유의하게 영향을 미친다고 나타났다. 즉, 잉여현금흐름과 ESG평가정보의 상호작용효과는 신용평점에 긍정적인 영향이 있다고 추론된다. 이러한 연구결과는 기업들이 잉여현금흐름과 함께 ESG경영활동(환경, 사회, 지배구조)을 함으로서 기업의 재무상태가 건전해지면서 기업위험이 감소한다는 점과 신용평점도 높아진다는 점을 시사한다. 그리고 잉여현금흐름과 한국기업지배구조원이 공시하는 ESG평가정보가 신용평점과의 관련성에 긍정적으로 반영된다는 것을 말해준다. 그러나 본 연구는 특정기관의 신용평점 자료를 가지고 분석하였기 때문에 오류를 배제할 수 없는 한계점이 있다.

The Effect of Free Cash Flow as a Moderating Variable on the Influence of Company Size and Liquidity on Dividend Policy

The purpose of this analysis is to demonstrate the effect of company size and liquidity on dividend policy in basic industry and chemicals companies listed on the Indonesian stock exchange, with free cash flow as a moderating variable. The phenomenon of increased company size and liquidity without a dividend policy piques researchers' interest in digging deeper into the effect of the independent variable on the dependent variable, which is bolstered by the influence of the moderating variable in the influence of the independent variable on the dependent variable. This research implemented quantitative and enlightening exploration. A total of 75 research data were collected based on the current population's intentional examination procedure. Company size was measured by the natural logarithm of the company's total assets, liquidity was measured using the current ratio by dividing total current assets by total current liabilities, and dividend policy was measured by the dividend payout ratio. Data analysis using smartPls programming with the least-squares information investigation technique reveals that company size and liquidity have no impact on dividend policy. In addition, free cash flow cannot be a moderating variable in the influence of company size and liquidity on dividend policy.

The Effect of Free Cash Flow, Debt to Equity Ratio, Working Capital Turnover and Earnings Per Share on Stock Prices with Stock Beta as Moderating Variable in Construction Sub-Sector Companies Listed on the IDX for the 2013-2019 Period

The purpose of this study aims to discover the effect of free cash flow, debt to equity ratio working capital turnover, and earning per share on stock price with stock beta as moderating variables. This research was conducted on Construction Sub-Sector Companies listed on the Indonesia Stock Exchange for 2013-2019. The technique in this study uses a purposive sampling technique. The sampling technique shows that the research sample is ten companies with seven years of research, so the number of observations in this study is 70. The data analysis method used in this study is Panel Data Regression Analysis which was carried out with the help of EViews software. The results showed that free cash flow, working capital turnover did not significantly affect stock prices and earnings per share, and the debt to equity ratio had a significant effect on stock prices. The stock beta variable can moderate the effect of free cash flow, debt to equity ratio, working capital turnover, and earnings per share on stock prices. Keywords: Free Cash Flow, Working Capital Turnover, Earnings Per Share and Debt to Equity Ratio, Stock Price and Stock Beta.

The effect of free cash flow (FCF) on agency cost and financial performance in financial sector companies registered in indonesia stock exchange (BEI) 2015-2016

The company not only aims to seek profit, but also to maximize the prosperity of its shareholders by maximizing the value of the company. Within the company, there are three people who have different interests, namely, company owners, shareholders, and managers. When the company generates free cash flow, there will be differences in the interests of the parties who make the work contract and create a conflict that will cause the company to pay costs, which is called agency cost. The result of this difference in interest can also affect the company's financial performance because the company's finances are not going well. The purpose of this study was to determine the effect of free cash flow (FCF) on agency cost and financial performance in financial sector companies listed on the IDX in 2015-2016. The type of research used in the research is Explanatory Research, with a population of 83 companies listed on the Indonesian stock exchange in the financial sector in 2015-2016. The sampling technique used the purposive sampling method of as many as 61 companies listed on the Stock Exchange in the financial sector 2015-2016. The analytical tool used in this study is a simple regression test. Based on the results of the analysis, it is found that free cash flow (FCF) has a positive and significant effect on agency cost in financial sector companies listed on the IDX 2015-2016 of 33.7% and free cash flow (FCF) has a positive and significant effect on performance. finance by 34.0%.