EFFECT OF ASSETS STRUCTURE, BUSINESS RISK, FREE CASH FLOW AND INVESTMENT OPPORTUNITY SET TO DEBT POLICY

Abstract

The purpose of this research is to get empirical effect to asset structure, business risk, free cash flow, and investment opportunities set to debt policy in manufacturing registered on Indonesian Stock Exchange. Population in this research is Manufactur registered on Indonesian Stock Exchange in period 2010-2014, while in sample this research is Manufacturing registered in Indonesian Stock Exchange be selected based on purposive sampling method. The number of sample in this research is 47 companies. The data were obtained from the Manufacturing companies annual report in Indonesian Stock Exchange (IDX) period 2010-2014. The hypothesis is used multiple linear regression model. The analysis regression by using the program SPSS 16.0. The result of this research is the business risk variables has significant effect to debt policy. While variable asset structure, free cash flow, and investment opportunity set is not significant to debt policy.

 

Keywords: Debt policy, asset structure, business risk, free cash flow, and investment                       opportunity set.