Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy

The purpose of this research is to describe the effect of free cash flow, firm growth, and profitability on debt policy by firm size as a moderating variable. The population in this study was 144 manufacturing companies sector that listed on the Indonesia Stock Exchange (IDX) during the years 2014-2...

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Main Authors: Agus Wahyudin, Khansa’ Salsabila
Format: Article
Language:English
Published: Universitas Negeri Semarang 2019-03-01
Series:Jurnal Dinamika Akuntansi
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Online Access:https://journal.unnes.ac.id/nju/index.php/jda/article/view/9766
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author Agus Wahyudin
Khansa’ Salsabila
author_facet Agus Wahyudin
Khansa’ Salsabila
author_sort Agus Wahyudin
collection DOAJ
description The purpose of this research is to describe the effect of free cash flow, firm growth, and profitability on debt policy by firm size as a moderating variable. The population in this study was 144 manufacturing companies sector that listed on the Indonesia Stock Exchange (IDX) during the years 2014-2016. The sample selection used purposive sampling method that generates as much as 61 samples of companies. This research used secondary data taken from annual reports. Testing of this research was done by using regression analysis with the difference absolute value test by IBM SPSS 21 version. The result of this research showed that free cash flow does not have significant effect on debt policy, while firm growth and profitability have significant effect on debt policy. Firm size is able to moderate the effect of firm growth and profitability on debt policy, but not able to moderate the effect of free cash flow on debt policy. The conclusion of this research is that firm size can affect on company’s judgment in deciding the debt policy taken to fund its operations and investment activities.
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issn 2085-4277
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publishDate 2019-03-01
publisher Universitas Negeri Semarang
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series Jurnal Dinamika Akuntansi
spelling doaj-art-c2bd261ecb1c4b609f32ba86145193c32025-08-20T03:23:16ZengUniversitas Negeri SemarangJurnal Dinamika Akuntansi2085-42772019-03-01111899710.15294/jda.v11i1.97668941Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt PolicyAgus Wahyudin0Khansa’ Salsabila1Accounting Department, Faculty of Economics, Universitas Negeri SemarangAccounting Department, Faculty of Economics, Universitas Negeri SemarangThe purpose of this research is to describe the effect of free cash flow, firm growth, and profitability on debt policy by firm size as a moderating variable. The population in this study was 144 manufacturing companies sector that listed on the Indonesia Stock Exchange (IDX) during the years 2014-2016. The sample selection used purposive sampling method that generates as much as 61 samples of companies. This research used secondary data taken from annual reports. Testing of this research was done by using regression analysis with the difference absolute value test by IBM SPSS 21 version. The result of this research showed that free cash flow does not have significant effect on debt policy, while firm growth and profitability have significant effect on debt policy. Firm size is able to moderate the effect of firm growth and profitability on debt policy, but not able to moderate the effect of free cash flow on debt policy. The conclusion of this research is that firm size can affect on company’s judgment in deciding the debt policy taken to fund its operations and investment activities.https://journal.unnes.ac.id/nju/index.php/jda/article/view/9766debt policyfirm growthfirm sizefree cash flowprofitability
spellingShingle Agus Wahyudin
Khansa’ Salsabila
Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy
Jurnal Dinamika Akuntansi
debt policy
firm growth
firm size
free cash flow
profitability
title Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy
title_full Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy
title_fullStr Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy
title_full_unstemmed Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy
title_short Firm Size Moderates the Effect of Free Cash Flow, Firm Growth, and Profitability on Debt Policy
title_sort firm size moderates the effect of free cash flow firm growth and profitability on debt policy
topic debt policy
firm growth
firm size
free cash flow
profitability
url https://journal.unnes.ac.id/nju/index.php/jda/article/view/9766
work_keys_str_mv AT aguswahyudin firmsizemoderatestheeffectoffreecashflowfirmgrowthandprofitabilityondebtpolicy
AT khansasalsabila firmsizemoderatestheeffectoffreecashflowfirmgrowthandprofitabilityondebtpolicy