THE ROLE OF FUNDING POLICY VARIABLES WITH COMPANY SIZE AS MODERATION VARIABLES IN LQ 45 COMPANIES

Abstract

The purpose of this study is to determine the effect of sales stability, operating leverage, company growth, and asset structure on funding policies with company size as a moderating variable using LQ 45 company objects listed on the Indonesia Stock Exchange (IDX). This research was conducted for five consecutive years from 2017 to 2021 which included 29 company samples taken using a purposive sampling technique. Data were analyzed using multiple linear regression analysis and the Moderated Regression Analysis (MRA) test for moderating variables. The results showed that only sales stability and asset structure had a partial effect with significant value, while operating leverage, company growth, and profitability did not have a significant effect on funding policy / Dept. To Equity Ratio (DER), while for the variable firm size as a moderating variable only can weaken the relationship between operating leverage and funding policy/Dept to Equity Ratio (DER).