The Influence of Institutional Ownership, Dividend Policy, Profitability, and Company Sizes on Debt Policy

Abstract

In some public companies, sometimes the shareholders were also becomes management, this situation is called institutional ownership. The aim to our research is acquired empirical result regarding effect of management stock owner on the company, dividend policy, returns on asset and company total asset on liability to total asset. Our research focus is on public companies which listing in Indonesia Stock Exchange along 5 consecutive years (2014 until 2018). Data collection used purposive sampling method by using 17 companies meet the criteria and take as sample. We use financial data acquired from stock exchange website. We used ordinary least square statistical analysis using statistical software to test our hypothesis. This study concluded that institutional share, dividend payment procedure, and company total asset have negative and not significant impact on company liabilities. Otherwise, profitability affect in opposite direction and significant to company liabilities.