Determinants of Debt Policy in Indonesia’s Manufacturing Companies

Natasha Claudia Darmawan (Faculty of Economics & Business, Universitas Tarumanagara)
Liana Susanto (Faculty of Economics & Business, Universitas Tarumanagara)

International Journal of Application on Economics and Business
Vol. 1 No. 1 (2023): February 2023

For manufacturing companies in Indonesia, the goal of this study is to gather empirical evidence to see if institutional ownership has a negative impact on corporate debt policy, if free cash flow has a negative impact on corporate debt policy, if asset structure has a positive impact on corporate debt policy, and if profitability has a negative impact on corporate debt policy. This study collects data using a purposive sample strategy and processes it using EViews 12 SV. Institutional ownership has no impact on corporate debt policy, free cash flow has a negative impact on corporate debt policy, asset structure has a negative impact on corporate debt policy, and profitability has a negative impact on corporate debt policy, according to research conducted on 73 companies between 2017 and 2020.