The Effect of Free Cash Flow, Liquidity and Company Growth on Debt Policy and Profitability as Moderating Variables in Mining Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2021 Period
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Published:
Oct 31, 2023
Keywords:
Free Cash Flow, Liquidity, Company Growth, Debt Policy, Profitability
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Articles
Statistics Article
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Abstract
This study aims to determine the effect of free cash flow, liquidity, and company growth on debt policy with profitability moderating the independent variables in mining sector companies listed on the Indonesian stock exchange in 2017-2021. Debt policy is very important for managers in companies that are expanding. The total population of this study is 49 companies and the sample in this study was 19 companies x 5 years of research 95 observations. The analytical technique used in this research is descriptive test, classic assumption test which consists of normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test, multiple linear regression test and moderated regression analysis (MRA). The results showed that the free cash flow has no effect on debt policy, liquidity has an effect on debt policy, company growth has no effect on debt policy, in mining sector companies listed on the Indonesian stock exchange for the 2017-2021 period. Meanwhile, for the Moderated Regression Analysis (MRA) test, the results show that profitability does not moderate the effect of free cash flow on debt policy, profitability does not moderate the effect of liquidity on debt policy, and profitability does not moderate the effect of company growth on debt policy in companies listed on the Indonesian stock exchange for the period 2017-2021.
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How to Cite
Harahap, N. N. T., & Minan, K. (2023). The Effect of Free Cash Flow, Liquidity and Company Growth on Debt Policy and Profitability as Moderating Variables in Mining Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2021 Period. ProBisnis : Jurnal Manajemen, 14(5), 313–324. https://doi.org/10.62398/probis.v14i5.340
References
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Isnaeni, Holy Nimah. (2021). The effect of asset structure, liquidity, free cash flow, and business risk on debt policy with profitability as a moderation variable. Economy and Business. Vol. 1, No. 1. Pages: 66-78. ISSN: 2809-3786.
Kristina, Anita., Prihatiningsih and Kusmargiani, Ida Savitri. (2019). Analysis of the Effect of Liquidity, Asset Structure, Free Cash Flow, and Company Size on Debt Policy (DER) at PT Jasa Marga Tbk for the 2009-2018 Period. Scientific Magazine, Vol. 7, No. 2, Pp: 98-102. ISSN: 2302-9315.
Mufidah, Mia Nur and Fahrurrozi. (2019). The Effects of Institutional Ownership, Dividend Policy, Company Growth and Company Size on Debt Policy Moderated by Financial Ratios. . . Journal of Accounting, Finance and Auditing, Vol. 2, No. 1, p. 1-14. ISSN: 2723-2522.
Myers, S.C dan Majluf, N.S. (2021). Corporate Financing and Investment Decisions when firms have information that investors do not have,. Journal of Financial Economic, Vol. 12: 187-221.
Nurfitriana, Anisa dan Fahrurrozi. (2018). Profitability In Moderating The Effects Of Business Risk Company Growth And Company Size On Debt Policy. Journal Of Accounting And Strategic Finance, Vo. 1. No. 2, Hal: 111-120. November, 2018 ISSN: 2614-6649.
Nurkholik, and Khasanah, Kharirotul. (2022). The effect of free cash flow, asset structure, liquidity, profitability, sales growth, and business risk on debt policy. Journal of Financial and Banking Accounting, Vol. 11, No. 1, Pp. 1-21. ISSN: 2656-4955.
Sari, Princess Indah. (2021). The effect of company size and company growth on debt policy with profitability as a moderating variable in manufacturing companies on the Indonesia Stock Exchange in 2017-2019. Thesis. Faculty of Economics, Medan State University.
Setiawan, R., Komalasari, E., & Tirtayasa, U. S. A. (2020). MEMBANGUN EFEKTIFITAS PEMBELAJARAN SOSIOLOGI DI TENGAH PANDEMI COVID-19. 4, 13.
Syachdilla, Rekada Mayang. (2022). The effect of institutional ownership, dividend policy, company growth, company size, and sales growth on debt policy with profitability as a moderating variable in mining sector companies listed on the IDX 2018-2020. Thesis. Faculty of Economics, Widya Dharma Klaten University.
Ummah, Annisa Mulahidlotul. (2018). The Effect of Free Cash Flow (FCF), Profitability, Company Growth and Ownership Structure on Debt Policy. Thesis. Faculty of Economics and Business. University of Muhammadiyah Gresik.
Amiliyah, Desi Nur. (2019). The effect of free cash flow, firm size, institutional ownership, managerial ownership, profitability, and asset structure on debt policy. Journal of Accounting. Vol. 1. No. 6 Surabaya: Faculty of Economics, Perbanas College of Economics Surabaya.
Andy, A., Angeline, G., Roberto, Y., Wijaya, H., &; Febrianty, L. (2022). Factors Influencing Debt Policy with Profitability as Moderation in Manufacturing Companies Listed on the Indonesia Stock Exchange. Journal of Bina Akuntansi.
Astuti, Nita and Nuraini, Luthfi. (2021). Factors Influencing Debt Policy. Business Economics.
Brigham, Eugene F. and Joel F. Houston. (2018). Fundamentals of Financial Management. Issue Fourteen. Salemba Four. Jakarta.
Fadhila, Farah., Setiadi, Iwan and Mulyati, Henny. (2021). The Effect of Company Growth, Asset Structure, Business Risk, and Free Cash Flow on Debt Policy (Study on State-Owned Companies Going Public Listed on the IDX). Scientific Journal of Accounting, Volume. 19, No. 1, Pages: 41-50, ISSN: 2579-8928.
Fadilla, Nur and Aryani, Fika. (n.d.). The Effect of Free Cash Flow and Company Growth on Debt Policy in Manufacturing Sector Companies Listed on the Indonesia Stock Exchange Category LQ 45 Year 2013-2017. Journal of Applied Accounting, Vol.1, No.1, Pp: 43-54. ISSN: 2715-1212.
Fahmi, Irham. (2014). Corporate Financial Management and Capital Market. First EditionMedia Discourse Partners. Jakarta.
Fauziah, Nanda Luthfi and Fortune, Goddess. (2022). The effect of free cash flow, institutional ownership, managerial ownership, and corporate growth on debt policy. Krisnadwipayana Journal of Accounting and Business, Vol. 9, No.1, May 2022. ISSN: 2406-7415. DOI: Http://Dx.Doi.Org/10.35137/Jabk.V9i2.683.
Fitriyani, Ulfi Nihayah dan Khafid, Muhammad. (2019). Profitability Moderates the Effects of Institutional Ownership, Dividend Policy and Free Cash Flow on Debt Policy. Journal Accounting Analysis, Volume. 8, No. 1, Hal : 45-51. ISSN: 2502-6216. DOI: 10.15294/Aaj.V8i1.25575.
Ghozali, Imam. (2018). Applications of Multivariate Analysis with IBM SPSS Program. Semarang: Diponegoro University Publishing Board.
God, Dwi. Fredian. Mahsuni, Abdul Wahid. and Junaidi. (2019). The effect of free cash flow, asset structure and business risk on the debt policy of manufacturing companies listed on the Indonesia Stock Exchange for the period 2012-2018. Financial Accounting, Volume. 8, No. 9. Pages: 50-62. ISSN: 2478-5643.
Hanafi, Mamduh. M. and Abdul Halim. (2016). Financial Statement Analysis. Yogyakarta: UPP STIM YKPN.
Haryanto, and Putri, Astin Prastiwi. (2021). The effect of dividend policy, profitability and liquidity on debt policy in companies in the Lq 45 Index for the 2017-2019 period. Thesis. Faculty of Economics and Business. Mercu Buana University Yogyakarta.
Isnaeni, Holy Nimah. (2021). The effect of asset structure, liquidity, free cash flow, and business risk on debt policy with profitability as a moderation variable. Economy and Business. Vol. 1, No. 1. Pages: 66-78. ISSN: 2809-3786.
Kristina, Anita., Prihatiningsih and Kusmargiani, Ida Savitri. (2019). Analysis of the Effect of Liquidity, Asset Structure, Free Cash Flow, and Company Size on Debt Policy (DER) at PT Jasa Marga Tbk for the 2009-2018 Period. Scientific Magazine, Vol. 7, No. 2, Pp: 98-102. ISSN: 2302-9315.
Mufidah, Mia Nur and Fahrurrozi. (2019). The Effects of Institutional Ownership, Dividend Policy, Company Growth and Company Size on Debt Policy Moderated by Financial Ratios. . . Journal of Accounting, Finance and Auditing, Vol. 2, No. 1, p. 1-14. ISSN: 2723-2522.
Myers, S.C dan Majluf, N.S. (2021). Corporate Financing and Investment Decisions when firms have information that investors do not have,. Journal of Financial Economic, Vol. 12: 187-221.
Nurfitriana, Anisa dan Fahrurrozi. (2018). Profitability In Moderating The Effects Of Business Risk Company Growth And Company Size On Debt Policy. Journal Of Accounting And Strategic Finance, Vo. 1. No. 2, Hal: 111-120. November, 2018 ISSN: 2614-6649.
Nurkholik, and Khasanah, Kharirotul. (2022). The effect of free cash flow, asset structure, liquidity, profitability, sales growth, and business risk on debt policy. Journal of Financial and Banking Accounting, Vol. 11, No. 1, Pp. 1-21. ISSN: 2656-4955.
Sari, Princess Indah. (2021). The effect of company size and company growth on debt policy with profitability as a moderating variable in manufacturing companies on the Indonesia Stock Exchange in 2017-2019. Thesis. Faculty of Economics, Medan State University.
Setiawan, R., Komalasari, E., & Tirtayasa, U. S. A. (2020). MEMBANGUN EFEKTIFITAS PEMBELAJARAN SOSIOLOGI DI TENGAH PANDEMI COVID-19. 4, 13.
Syachdilla, Rekada Mayang. (2022). The effect of institutional ownership, dividend policy, company growth, company size, and sales growth on debt policy with profitability as a moderating variable in mining sector companies listed on the IDX 2018-2020. Thesis. Faculty of Economics, Widya Dharma Klaten University.
Ummah, Annisa Mulahidlotul. (2018). The Effect of Free Cash Flow (FCF), Profitability, Company Growth and Ownership Structure on Debt Policy. Thesis. Faculty of Economics and Business. University of Muhammadiyah Gresik.