EFFECT OF COMPANY GROWTH, SALES GROWTH AND FREE CASH FLOW ON DEBT POLICY
Abstract
This study aims to analyze and obtain empirical evidence of the influence of company growth, sales growth and free cash flow on debt policy empirical studies in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2017-2021. This research is a quantitative research with a descriptive method, the data used is secondary data in the form of financial reports containing numbers and then testing and describing or giving an overview of these results. The sample selection in this study used a purposive sampling technique. The data analysis method used is panel data regression which is processed using Eviews version 9. The population used in this study are manufacturing companies in the consumer goods industry sector which are listed on the Indonesia Stock Exchange in 2017-2021, totaling 57 companies. The samples obtained were 39 companies with 5 years of research, the total research data obtained were
195. The results of this study indicate that sales growth and free cash flow have no effect on debt policy while company growth has an influence on debt policy. Taken together the company growth variables, sales growth and free cash flow affect debt policy. The total research data obtained is 195. The results of this study indicate that sales growth and free cash flow have no effect on debt policy, while company growth has an influence on debt policy. Taken together the company growth variables, sales growth and free cash flow affect debt policy. The total research data obtained is 195. The results of this study indicate that sales growth and free cash flow have no effect on debt policy, while company growth has an influence on debt policy. Taken together the company growth variables, sales growth and free cash flow affect debt policy.
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