Debt Policy for Manufacturing Companies
Sri Murni (a*), Harijanto Sabijono (a), Irvan Trang (a)
Faculty of Economy and Business, Universitas Sam Ratulangi, Manado, Indonesia *srimurnirustandi[at]unsrat.ac.id
Abstract
This study aims to determine the effect of liquidity, company size, profitability, and managerial ownership on debt policy in manufacturing companies on the Indonesia Stock Exchange. This research was conducted at the Indonesia Stock Exchange. The object of research in manufacturing companies financial statements in the form of the 2011-2017 financial statements published in the Indonesian Capital Market Directory and other data sourced from IDX. To test the hypothesis between variables X and Y simultaneously using the F test, while partially using the t test. The data used is secondary data. In this study using time series data and cross section (pooling data), and based on criteria. The number of samples that met the criteria were 46 companies. The results showed that simultaneous liquidity, company size, profitability, managerial ownership significantly influence debt policy. Partially, liquidity has a negative and significant effect on debt policy. Profitability and managerial ownership have a positive and significant effect on debt policy, while company size has no significant effect on debt policy.
Keywords: Liquidity; Company Size; Profitability; Managerial Ownership; Debt Policy; Manufacturing Companies
Topic: Finance and Accounting