Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences
Vol 5, No 3 (2022): Budapest International Research and Critics Institute August

The Effect of Profitability, Free Cash Flow, and Company Size on Debt Policy for Construction Companies

Devi Twi Jayanti (Unknown)
Khomsiyah Khomsiyah (Unknown)



Article Info

Publish Date
21 Jul 2022

Abstract

The purpose of this study was to determine the effect of profitability, free cash flow, and company size on debt policy in building construction companies listed on the Indonesia Stock Exchange in 2017-2021. There are 55 data selected by the sample through purposive sampling method. The research method is using multiple regression analysis for hypothesis testing. The results partially show that profitability has a negative effect on debt policy, free cash flow has no effect on debt policy, while firm size has a positive effect on debt policy. Simultaneous research results where profitability, free cash flow, and firm size affect debt policy with a coefficient of determination of 0.560 which means that 56% of debt policy can be explained by independent variables (profitability, free cash flow, and firm size) while the remaining 44% is explained by another variable.

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Journal Info

Abbrev

birci

Publisher

Subject

Religion Arts Humanities Economics, Econometrics & Finance Social Sciences

Description

Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences is a peer-reviewed journal published in February, May, August and November by Budapest International Research and Critics University Journal (BIRCU-Journal). BIRCI welcomes research papers in ...