The Effect of Profitability, Liquidity, Leverage, Free Cash Flow, and Good Corporate Governance on Dividend Policies (Empirical Study on Manufacturing Companies Listed in Indonesia Stock Exchange 2017-2019)

ABSTRACT : The purpose of this study is to obtain empirical evidence regarding the effect of profitability,liquidity, leverage, free cash flow, and good corporate governance on dividend policy in manufacturingcompanies listed on the Indonesia Stock Exchange for the 2017-2019 period. The sample technique used ispurposive sampling with 55 companies as samples. The analysis technique used in this research is multiple linearregression analysis. Based on the analysis, this research profitability, liquidity, and good corporate governancedo not affect dividend policy. This shows that profitability, liquidity, and good corporate governance of acompany cannot be used as an indicator that determines the size of the dividends distributed by the company.Leverage has a negative effect on dividend policy. This shows that the higher the leverage of a company, thelower the company’s ability to pay dividends. Free cash flow has a positive effect on dividend policy. This showsthat the higher the free cash flow of a company, the higher the company’s ability to pay dividends. Forcompanies that have a high level of debt, it is advisable to reduce the debt they have so that the company is ableto distribute dividends with a higher amount