Pembimbing : Mahzumi

Abstrak:
The purpose of this research is to examine whether free cash flow, institutional ownership, and company size significantly influence the debt policy in manufacturing company that listed in Indonesia Stock Exchange for the period 2013-2014

The research uses secondary data. The sample of this research is manufacturing company that listed in Indonesia Stock Exchange period 2013-2017 by using purposive sampling method. There are 38 companies that fulfill the criteria as research sample. This research used quantitative method. Research independent variabel used are free cash flow, institutional ownership, and company size, while dependent variable used is debt policy. The hypothesis test used is panel data regression analysis with time series and cross section data and using Eviews 8.0 software

The result of study indicate that the variable of free cash flow and company size have a significant negative effect on debt policy, while the institutional ownership variable has no influence to debt policy. Simultaneously, the results of this study indicate that variable free cash flow, institutional ownership, and company size significantly influence the debt policy.

Keywods: Free Cash Flow, Institutional Ownership, Company Size, and Debt polic