What Factors Affect Debt Policy During the COVID-19 Outbreak? Case of Indonesia

Authors

  • Khanifah Khanifah Department of Accounting, Faculty of Economics and Business, Universitas Wahid Hasyim
  • Atiqullah Muhammad Alif Department of Accounting, Faculty of Economics and Business, Universitas Wahid Hasyim
  • Agus Triyani Department of Accounting, Faculty of Economics and Business, Universitas Wahid Hasyim
  • Suhita Whini Setyahuni Department of Management, Faculty of Economics and Business, Universitas Dian Nuswantoro, Indonesia

DOI:

https://doi.org/10.33633/jpeb.v9i2.10067

Keywords:

Free Cash Flow, Firm Growth, debt policy

Abstract

This research examines the influence of free cash flow and company growth on debt policy at LQ 45 Companies on the Indonesia Stock Exchange in 2018-2021. We analyze 25 companies listed in the LQ-45 index during 2018-2021, with 100 firms-years observation in total. The sample is selected based on data availability using the purposive sample technique. We analyze the data using multiple regression analysis by using E-views software. The results indicate that Free cash flow has a positive effect on debt policy, while company growth does not affect debt policy. Our research contributes to the development of agency theory, and we use the new measurement of free cash flow. We also analyze the COVID-19 outbreak factors as a control variable, which becomes our important contribution to this research.   Keywords:Free Cash FlowFirm GrowthDebt policy

References

Adnin, M., & Triyonowati. (2021). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Profitabilitas, Dan Pertumbuhan Perusahaan Terhadap Kebijakan Hutang. Jurnal Ilmu Dan Riset Manajemen, 10(6), 1–17.

Afiezan, A., Wijaya, G., & Claudia, C. (2020). The effect of free cash flow, company size, profitability and liquidity on debt policy for manufacturing companies listed on IDX in 2016-2019 periods. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol, 3(4), 4005–4018.

Aliansyah, M., & Ratno, R. (2022). Pengaruh Kepemilikan Institusional dan Ukuran Perusahaan Terhadap Kebijakan Utang (Studi Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2019). Ekomen, 21(1), 1–12.

Apriyanti, V. (2018). Analisis Pengaruh Free Cash Flow, Pertumbuhan Perusahaan, Profitabilitas, dan Kebijakan Dividen terhadap Kebijakan Hutang pada Perusahaan Sub Sektor …. FIN-ACC (Finance Accounting), 3(07), 1125–1137.

Fatma, B. M., & Chichti, J. (2011). Interactions between free cash flow, debt policy and structure of governance: Three stage least square simultaneous model approach. Journal of Management Research, 3(2), 1–34.

Fauzi, A., Azis, M. T., & Hadiwibowo, I. (2022). PENGARUH FREE CASH FLOW, STRUKTUR ASET, PROFITABILITAS DAN PERTUMBUHAN PERUSAHAAN TERHADAP KEBIJAKAN HUTANG. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan, Dan Akuntansi, 14(2), 130–145.

Gabrilia, F., Octavia, A. D., Meliala, M. S., & Sumaiya, A. (2022). COMPARISON ANALYSIS OF LQ-45 SHARE PRICES BEFORE AND DURING THE COVID-19 PANDEMIC. Indikator: Jurnal Ilmiah Manajemen Dan Bisnis, 6(1), 75. https://doi.org/10.22441/indikator.v6i1.14184

Ghozali, I., & Ratmono, D. (2017). ANALISIS MULTIVARIAT DAN EKONOMETRIKA Teori, Konsep, dan Aplikasi dengan Eviews 10. Badan Penerbit Universitas Diponegoro.

Mahadwartha, P. A., & Ismiyanti, F. (2008). Debt policy, free cash flow hypothesis, and balancing of agency theory through ownership: Evidence from Indonesia. Corporate Ownership and Control, 5(2), 256–263.

Miglo, A. (2020). Zero-debt policy under asymmetric information, flexibility and free cash flow considerations. Journal of Risk and Financial Management, 13(12), 296.

Mufidah, M. N., & Fachrurrozie, F. (2021). Pengaruh Kepemilikan Institusional, Kebijakan Deviden, Pertumbuhan Perusahaan dan Ukuran Perusahaan Terhadap Kebijakan Hutang yang Dimoderasi oleh Rasio Keuangan. JAKA (Jurnal Akuntansi, Keuangan, Dan Auditing), 1(1), 1–14. https://doi.org/10.56696/jaka.v2i1.5145

Muttaqin, M. F., & Adiwibowo, A. S. (2023). Pengaruh financial leverage, likuiditas, ukuran perusahaan dan arus kas bebas terhadap kinerja keuangan pada masa pandemi covid 19. Jurnal Akuntansi of Accounting, 12, 1–12.

Nurdani, R., & Rahmawati, I. Y. (2020). The Effect of Firm Sizes, Profitability, Dividend Policy, Asset Structure, Sales Growth and Free Cash Flow on Debt Policy. AMAR (Andalas Management Review), 4(1), 100–119.

Nurkholik, N., & Khasanah, K. (2022). Pengaruh free cash flow, struktur aset, risiko bisnis dan profitabilitas terhadap kebijakan hutang (Studi Empiris Perusahaan Sektor Industri Barang Konsumsi yang Terdaftar di BEI 2016-2020). E-Jurnal Manajemen Unud, 11(1), 1–21.

Sumarata, R. P. (2022). Pengaruh Struktur Modal , Kinerja Keuangan dan Ukuran Perusahaan Terhadap Nilai Perusahaan Effect of Capital Structure , Financial Performance and Firm Size on Firm Value. 1(2), 79–88.

Supriadi, A. (2022). Pengaruh Free Cash Flow, Sales Growth, Kebijakan Dividen Pada Kebijakan Hutang Perusahaan Property Yang Ada Di Bursa Indonesia. Land Journal, 3(1), 87–101. https://doi.org/10.47491/landjournal.v3i1.1756

Wahyudin, A. (2019). Firm size moderates the effect of free cash flow, firm growth, and profitability on debt policy. Jurnal Dinamika Akuntansi, 11(1), 89–97.

Wahyuni, P. D. (2021). Free cash flow, debt policy and profitability: Analysis the investment opportunity set. European Journal of Business and Management Research, 6(4), 157–162.

Downloads

Published

2024-09-30

How to Cite

Khanifah, K., Alif, A. M., Triyani, A., & Setyahuni, S. W. (2024). What Factors Affect Debt Policy During the COVID-19 Outbreak? Case of Indonesia. Jurnal Penelitian Ekonomi Dan Bisnis, 9(2), 84–93. https://doi.org/10.33633/jpeb.v9i2.10067

Issue

Vol. 9 No. 2 (2024): Jurnal Penelitian Ekonomi dan Bisnis

Section

Articles

License

Copyright (c) 2024 Jurnal Penelitian Ekonomi dan Bisnis

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with this journal agree to the following terms:
  1. The journal allow the authors to hold the copyright without restrictions and allow the authors to retain publishing rights without restrictions. 
  2. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  3. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  4. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
  5. Creative Commons License
    This work is licensed under a Creative Commons Attribution 4.0 International License.  Which means you are free to:
    • Adapt — remix, transform, and build upon the material for any purpose, even commercially.