Debt Policy in Manufacturing Companies: Evidence from Indonesia
Debt Policy in Manufacturing Companies: Evidence from Indonesia

Summary/Abstract: This study aims to determine the impact 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 research object in the manufacturing company's financial statements in the form of financial statements for the period 2011 - 2017 published in the Indonesian Capital Market Directory and other data sourced from IDX. To test the hypothesis between variable X and Y variables simultaneously using the F test, while partially using the t-test. The data used is secondary data. This research using the data time series and cross-section (pooling data), and based on the criteria, then the number of samples that meet the criteria of 46 companies. The results showed that simultaneous liquidity, company size, profitability, managerial ownership significantly influence the debt policy. Partially liquidity and significant negative impact on policy debt, profitability, and managerial ownership has a positive and significant impact on debt policy, while the company size influence is not significant to debt policy.

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