“INFLUENCE OF COMPANY SIZE, GROWTH, AND PROFITABILITY ON DEBT POLICY OF MANUFACTURING COMPANY LISTED ON INDONESIA STOCK EXCHANGE”

Abstract

The purpose of this study is to know and analyzethe effect of companysize, growth and profitability of  debt policy of the company. Population taken in this research is manufacturing company that listed and still active in Indonesia Stock Exchange (BEI) during 2014 until year 2016 amounted to 138 companies with research simple amounted to 39 companies. The method of analysis used in this study is multiple regression analysis. The analys is resulting that firm size has a positive and significant impact on debtpolicy. Corporate growth and Profitability have a negative and significant effect on debt policy. Firms should increase firm size and growth in order to have more stable cash flowthat can reduce the risk of using debt in order to avoid future bankruptcy risks and further research needs to develop this research by extending research samples to other industrial sectors so that it can reflecting industry conditions in Indonesia.

Keywords: companysize, companygrowth, profitability and debtpolicy