Undervaluation, free cash flow, leverage dan keputusan pembelian kembali saham (buyback)

Abstract

Stock buyback is one of the corporate actions carried out by a company in the form of buying back outstanding shares that are in public. Variables undervaluation, free cash flow and leverage used is estimated to have an influence on the decision to buyback shares in the company. This study aims to determine the effect of Undervaluation, Free Cash Flow, and Leverage on stock buyback decision in public listed companies on the Indonesia Stock Exchange period 2015-2019. The data used in this research is the annual financial statements of 20 publicly traded companies that repurchase shares in the period 2015-2019. This research uses logistics regression method with SPSS 20 and Microsoft Excel 2007. The results showed that partially, undervaluation has no significant effect on stock buyback decision with significancy level 0,839>0,05. Free Cash Flow has no significant effect on stock buyback decision with significancy level 0,742>0,05. Leverage has a significant negative influence on stock buyback decision with significancy level 0,049<0.05. Key words: Stock buyback decision; undervaluation; free cash flow; leverage