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

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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

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Articles

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