The influence of free cash flow, capital structure, investment opportunities, and company growth on dividend policy: (Empirical Study on Mining Companies Listed on the Indonesia Stock Exchange (IDX) for the period 2019-2023)

Sawal, Nuning Safitri M.
Ohorella, Rizki Wahyu Utami
Meliana, Meliana

Journal of Contemporary Accounting
Volume 7 Issue 3, 2025

This study aims to analyze the effect of free cash flow, capital structure, investment opportunities, and firm growth on dividend policy in mining companies listed on the Indonesia Stock Exchange (IDX) during the period 2019–2023. The research employed multiple regression analysis using secondary data obtained from companies’ financial statements and annual reports. The results indicate that free cash flow, capital structure, and firm growth have no significant effect on dividend policy, while investment opportunities have a significant positive effect. Simultaneously, the four variables significantly influence dividend policy with an F-statistic probability value of 0.002 (<0.05) and are able to explain 15.88% of the variation in dividend policy, while the remaining 84.12% is explained by other factors outside the research model. These findings imply that investment opportunities are an important consideration for management in determining dividend policy, whereas free cash flow, capital structure, and firm growth are not the main determinants.