THE MEDIATING ROLE OF PROFITABILITY ON THE RELATIONSHIP FREE CASH FLOWANDLEVERAGE ON STOCK PRICING (Case Study on Manufacture Company, SubSectorsofConsumer in 2016 – 2019)

ABSTRACT: This study aims to examine the effect of profitability as an intervening in the influence of thefree cash flow and leverage on stock pricing. As well as the direct effect of Leverage, profitability amd freecashflow to stock pricing. This study uses a path analysis model and polling data from on 51companies ofvarious manufacture consumer good subsectors on the Indonesia Stock Exchange (IDX), over a period 3 years2016 – 2019,The result of this study is free cashflow and leveragehad noeffectonstockprices and freecashflowhad a significantpositiveeffectonprofitability, leverage had noeffectonprofitability, profitability had asignificantpositiveeffectonstockprices. we take path analyses to find out the whether profitabilitycould be themediating variable of free cashflow and leverage on stock prices hence the result has found that the variabel isunable to mediate the effect of free cashflow and stockprices.

Keywords -freecashflow, leverage, profitability and stock prices