KEPUTUSAN PERUSAHAAN MELAKUKAN SHARE REPURCHASE: FREE CASH FLOW HYPOTHESIS ATAUKAH SIGNALING THEORY
Abstrak: This study aims to
examine the factors that affect companies doing share repurchase with free cash
flow as dependent variable, firm value, firm size, leverage, earnings per
share, and dividends. The sample in this study are the companies that make
share repurchase and the comparison companies listed on the Indonesia Stock
Exchange in 2004 until 2009. data used in this research is secondary data
obtained from financial data on the website www.idx.com. The number of samples
in this study were as many as 38 companies consisting of 19 companies doing
share repurchase and 19 comparison companies are not doing share repurchase.
data analysis was performed with logistic regression using SPSS version 16.0. Results
of hypothesis testing showed the influence of a low firm value (undervalued)
more influence corporate decisions to share repurchase and significant
(Significant = 0034). Free cash flow in order to reduce the agency problem does
not show significant results to influence the company’s decision to share
repurchase (Significant = 0141). Furthermore, earnings per share showed a
negative and significant influence but the dividends show a positive influence and
not significant where the second hypothesis is also rejected. Free cash flow,
earnings per share, and dividends is a variable that hypothesis is rejected
Size also affects the company and leverage the company’s decision to share
repurchase.
Keywords: Share Repurchase,
Free Cash Flow, Signaling Theory, Leverage, Earnings per share, Dividend
Penulis: Eddy surANtA, PRATANA
PUSPA MIdIASTUTy dAN R. RyAN MULyA WIJAyA
Kode Jurnal: jpakuntansidd120327
