Studying the Effect of Financial Leverage on Agency Cost Resulting from Free Cash Flow of Manufacturing Companies Accepted in Tehran Stock Exchange

2014 ◽  
Vol 3 (3) ◽  
pp. 1-9 ◽  
Author(s):  
Mahmoodreza Mostaghimi ◽  
Esmaeil Ramezanpour ◽  
Amir Hossein Nozari
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Financial Leverage

scholarly journals Agency Cost dan Kebijakan Dividen (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia)

2021 ◽  
Vol 7 (1) ◽  
pp. 33-41
Author(s):  
Elliv Hidayatul Lailiyah ◽  
Muhammad Dzikri Abadi
Keyword(s):  
Cash Flow ◽  
Large Scale ◽  
Stock Exchange ◽  
Agency Problems ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Insider Ownership ◽  
Operational Activities

Manufacturing companies in Indonesia are large-scale companies and dominate the Indonesia Stock Exchange. The number of companies listed on the stock exchange is increase every year, which results in more people having the opportunity to own a company. The spread of more investors who own the company makes conflict between owners even higher. The purpose of this study is to determine the effect of agency cost proxied by insider ownership, dispersion of ownership, free cash flow, and collateralizable assets on dividend policies of manufacturing companies in Indonesia. Data in the form of secondary data in the form of financial reports and annual reports for the period 2012-2019. The data used multiple linear regression statistical analysis techniques. The results of this study show that agency cost, which is proxied by dispersion ownership, free cash flow and collateralizable assets, has a positive effect on dividend policy. A  firm in its operational activities, carries out agency relationships. Agency problems arise when an agent acts not in accordance with the principal's interests, which causes a conflict of interest between the principal and agent. Agency problems will increase agency cost. The agency problem can be reduced by the dividend payment mechanism, namely by increasing the proportion of dividend payments from company profits for stockholders. In contrast to insider ownership which does not affect dividend decisions because the percentage of company ownership owned by insiders is limited in Indonesia.

scholarly journals PENGARUH ARUS KAS BEBAS, PERTUMBUHAN PERUSAHAAN DAN PROFITABILITAS TERHADAP FINANCIAL LEVERAGE (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia)

2020 ◽  
Vol 6 (1) ◽  
pp. 1-14
Author(s):  
Heny Rofizar ◽  
Muhammad Arfan ◽  
Faisal Faisal
Keyword(s):  
Path Analysis ◽  
Cash Flow ◽  
Firm Growth ◽  
Stock Exchange ◽  
Negative Influence ◽  
Positive Influence ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Financial Leverage ◽  
Research Show

AbstractThe objective of this research is to examine the influence of free cash flow, firm growth, and profitability on financial leverage of manufacturing companies listed in Indonesian Stock Exchange for the period 2011 to 2015. Out of 121 manufacturing companies, 34 companies were selected as sample using purposive samping technique and then it estimated using path analysis. The results of this research show that: (1) free cash flow have positive influence towards financial leverage; (2) firm growth have positive influence towards financial leverage; and (3) profitability have negative influence towards financial leverage. These findings implied that in managing the financial leverage, the manufacturing companies should deliberate the importance of free cash flow, firms growth, and profitability. Keyword:   Financial Leverage, Free Cash Flow, Firms Growth, and Profitability   AbstrakTujuan dari penelitian ini adalah untuk menguji pengaruh arus kas bebas, pertumbuhan perusahaan, dan profitabilitas terhadap financial leverage pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2011-2015. Dari 121 perusahaan manufaktur, 34 perusahaan dipilih menjadi sampel penelitian dengan menggunakan metode purposive sampling dan kemudian diestimasi dengan menggunakan analisis jalur. Hasil pengujian menunjukkan bahwa: (1) arus kas bebas berpengaruh positif terhadap financial leverage; (2) pertumbuhan perusahaan berpengaruh positif terhadap financial leverage; dan (3) profitabilitas berpengaruh negatif terhadap financial leverage. Temuan penelitian ini bermakna bahwa dalam mengelola financial leverage, perusahaan manufaktur harus mempertimbangkan pentingnya arus kas bebas, pertumbuhan perusahaan, dan profitabilitas dari perusahaan tersebut. 

scholarly journals PENGARUH AGENCY COST, RETURN ON EQUITY (ROE), DAN FREE CASH FLOW TERHADAP DIVIDEND PAYOUT RATIO PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI PERIODE 2010-2019

2021 ◽  
Vol 5 (2) ◽  
pp. 66-73
Author(s):  
Siti Sarah Hasibuan ◽  
Lukmanul Hakim2
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
General Meeting ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Return On Equity ◽  
Insignificant Effect

The dividend of a company is always a concern for shareholders to invest. Information regarding the state of the company can be seen in the financial statements. This study aims to examine the effect of Managerial Ownership, Return On Equity and Free Cash Flow on the Dividend Payout Ratio in manufacturing companies listed on the Indonesia Stock Exchange for the 2010-2019 period. According to Sartono, dividends are profits obtained by the company and distributed to shareholders. Decisions regarding the amount of dividends will be determined at the General Meeting of Shareholders (GMS). The results of this study indicate that Managerial Ownership has a positive and significant effect on the Dividend Payout Ratio. Return On Equity has a negative and insignificant effect on the Dividend Payout Ratio and Free Cash Flow has a positive and insignificant effect on the Dividend Payout Ratio.

Dividend Payout Ratio: Persoalan Free Cashflow, Debt To Equity Ratio, Kepemilikan Institutional, Investment Opportunity, Dan Kesejahteraan Karyawan

Liquidity ◽  
2017 ◽  
Vol 6 (1) ◽  
pp. 1-11
Author(s):  
Nurlis Azhar ◽  
Helmi Chaidir
Keyword(s):  
Cash Flow ◽  
Significant Influence ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Flow Ratio ◽  
Prediction Ability ◽  
Employee Welfare ◽  
Equity Ratio

This study was conducted to examine the effect of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (Parliament) partially on manufacturing companies listed on Indonesia Stock Exchange period 2011-2015. In addition, to test the feasibility of regression model, the influence of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (DPR) simultaneously at manufacturing company listed on Bursa Indonesia Securities period 2011-2015. The population in this study are 146 manufacturing companies that have been and still listed in Indonesia Stock Exchange period 2011-2013. The sampling technique used was purposive sampling and obtained sample of 42 companies. Data analysis technique used is by using multiple linear regression test. The results showed that Free Cash Flow Ratio, no significant effect on Divident Payout Ratio (DPR). Debt Equity Ratio (DER) has a negative and significant influence on Divident Payout Ratio (DPR), Institutional Ownership has a significant positive effect on Divident Payout Ratio (DPR), Employee Welfare and Price Earning Ratio (PER) has a positive and significant influence on the Divident Payout Ratio ). Simultaneously Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) give effect to Divident Payout Ratio. The prediction ability of the five variables to the Divident Payout Ratio (DPR) is 21.3% as indicated by the adjusted R square of 0.271 while the remaining 79.7% is influenced by other factors not included in the research model.

scholarly journals Free cash flow and earnings management: board of commissioner, board independence and audit quality

2017 ◽  
Vol 14 (4) ◽  
pp. 284-288 ◽  
Author(s):  
Yulius Kurnia Susanto ◽  
Arya Pradipta ◽  
Indra Arifin Djashan
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Sampling Method ◽  
Audit Quality ◽  
Flow Problem ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Management Board

The purpose of the research is to provide empirical evidence about the effect of board of commissioner, board independence and audit quality on relationship between free cash flow and earnings management. This research used 290 data from manufacturing companies listed in Indonesia Stock Exchange, selected using purposive sampling method, during 2012 until 2014. Earnings management calculated using Modified Jones (1991) Model include ROA from Kothari et al. (2005). Data for the research were analyzed using multiple regression analysis. The results of the research showed that the effect of board of commissioner, board independence and audit quality on relationship between free cash flow and earnings management is negative and significant. Board of commissioners, board independence and audit quality can reduce earnings management problems arising from free cash flow. Board of commissioners, board independence and audit quality oversee the opportunistic behavior of managers that arises from free cash flow problem.

scholarly journals PENGARUH FREE CASH FLOW TERHADAP UTANG

2017 ◽  
Vol 4 (2) ◽  
pp. 107
Author(s):  
Heru Nurwahyudi ◽  
Aida Ainul Mardiyah
Keyword(s):  
Cash Flow ◽  
Hypothesis Test ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Third Party ◽  
Manufacturing Companies ◽  
Font Size ◽  
Public Companies ◽  
Agency Relationship ◽  
Debt Policy

<p style="text-indent: 0.4in; margin-top: 0.18in; margin-bottom: 0in;" align="JUSTIFY"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><span style="font-size: small;"><span style="font-style: normal;">The </span></span></span></span></span><em><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">objective of this research is to analysis and giving the empirical evidence </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">about the free cas flow and the effect of it for debt policy of public companies in </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">Indonesia. This research was using 66 samples of manufacturing companies in the </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">year 2000 and 90 sample of manufacturing in the year 2001. This sample was </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">elected based on purposive sampling, the hypothesis test is the simple tinier regres-</span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">sion.</span></span></span></span></em></span></span></p><p style="text-indent: 0.4in; margin-top: 0.03in; margin-bottom: 0in;" align="JUSTIFY"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><em><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">The result of this research showed that hypothesis were suppo</span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-size: small;">4</span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">ted, there </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">are influence of free cash flow to the debt policy. In the agency relationship there is </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">differences interest between the principal and the manager also created agency </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">problems that finally also create agency cost. In the shareholders (agents) point of </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">view, this can be minimize by the third party (debtho!der) whose come by the debt </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">policy. Increasing financing with debt will reduce the conflict between the sharehold-</span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">ers and the management.</span></span></em></span></span></p><p style="margin-top: 0.2in; margin-bottom: 0in;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>Keywords: </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><em><span style="font-weight: normal;">Free cash flow, debt</span></em></span></span></span></p>

scholarly journals DETERMINAN EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP NILAI PERUSAHAAN (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI Periode 2017-2018)

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Derwin Juan Sagrim ◽  
Syaikhul Falah ◽  
Bill J.C Pangayow
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Free Cash Flow ◽  
Earning Management ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Investment Opportunity Set ◽  
Investment Opportunities

This research has aim to examine the influence of investment opportunities set, board independence, and free cash flow toward firm value with earning management as the intervening variable in manufacturing companies listed on Indonesian Stock Exchange for period 2017 to 2018. This study used a sample of 43 companies with 6 years’ time period. The method of analysis is multiple regression model with further done with path analysis using SPSS 23. These results indicate that investment opportunities set and free cash flow have a significant direct effect on the value of the firm, while investment opportunity set and board independence have the indirect effect. Investment opportunities set, board independence, free cash flow and earning management simultaneously affect the firm value with adjusted R- squared 55.3%. Overall this study indicates that earning management has important role as the intervening variable betweeninvestment opportunities set, board independence & free cash flow relating to firm value.

scholarly journals Effect of Bid Ask Spread, Profitability, and Free Cash Flow on Earning Management

2020 ◽  
Vol 23 (3) ◽  
pp. 449
Author(s):  
Nurainun Bangun
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Sampling Method ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Bid Ask Spread

The purpose of this study was to determine the effect of bid ask spread, profitability, and free cash flow on earnings management. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The sampling method used was purposive sampling with predetermined criteria. Earning management is determined by the accruals method. The results of this study stated that the bid ask spread did not have a significant effect on earnings management, while profitability and free cash flow had a significant effect on earnings management.

scholarly journals The Effect of Firm Sizes, Profitability, Dividend Policy, Asset Structure, Sales Growth and Free Cash Flow on Debt Policy

2020 ◽  
Vol 4 (1) ◽  
pp. 100-119
Author(s):  
Ria Nurdani ◽  
Ika Yustina Rahmawati
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Free Cash Flow ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Company Growth ◽  
Debt Policy

The study aims to examine the effect of company size, profitability, dividend policy, asset structure, company growth and free cash flow on debt policy. The object of this study uses manufacturing companies listed on the Indonesia Stock Exchange. The data used is secondary data in the form of annual financial statements for the 2015-2018 period. The collection technique used in this study was purposive sampling while the data analysis techniques used in this study were descriptive statistics, classic assumption tests, multiple regression analysis and hypothesis testing. The analysis show that the size of the company has a negative and not significant effect on debt policy, profitability has a negative and significant effect on debt policy. Dividend policy variables and asset structure has a negative and significant effect on debt policy. While sales growth and free cash flow has no effect on debt policy.

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