TAX RATES, FREE CASH FLOWS, ASSET STRUCTURE, AND DEBT POLICY (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange for the Period 2013-2017)
Abstract
Debt policy is a company's decision in order to obtain funding that is used to fund the company's operational activities. This study aims to examine the effect of tax rates, free cash flow, asset structure, on debt policy in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX). This research uses secondary data. The population in this study is manufacturing companies in the consumer goods industry registered in the Indonesia Stock Exchange in the period 2013-2017. Using the purpose sampling method, the number of manufacturing companies sampled in this study 110 samples from 22 companies with observations over 5 years and used multiple linear regression analysis techniques with the application of eviews 9. The results of this study indicate that free cash flow and asset structure affect the debt policy. The tax rate has no effect on debt policy. Simultaneously the tax rate, free cash flow, asset structure, affect the debt policy.
References
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