The Effect Of Liquidity And Free Cash Flow On Company Dividend Policy (Study Of Food And Beverage Companies Listed On The Indonesia Stock Exchange 2022–2024)

Abstract

This study aims to examine the effect of liquidity and free cash flow on dividend policy in food and beverage companies listed on the Indonesia Stock Exchange (IDX) during 2022–2024. This study employs a quantitative approach with an associative research design. The population consists of food and beverage companies listed on the IDX during the observation period, while the sample is selected using purposive sampling based on predetermined criteria. Secondary data are obtained from annual reports and audited financial statements published by the IDX and respective company websites. Liquidity is measured using the Current Ratio (CR), free cash flow is measured based on operating cash flow after capital expenditures, and dividend policy is measured using the Dividend Payout Ratio (DPR). The data are analyzed using descriptive statistics, classical assumption tests, and multiple linear regression, followed by t-tests, F-tests, and the coefficient of determination. The study is expected to provide empirical evidence regarding whether liquidity and free cash flow influence dividend policy, both partially and simultaneously. The findings are expected to contribute to the literature on corporate financial decision-making and provide practical insights for management and investors in evaluating dividend distribution decisions in the Indonesian food and beverage sector. Keywords: Liquidity, Free Cash Flow, Dividend Policy, Dividend Payout Ratio, Food and Beverage Companies, Indonesia Stock Exchange.