THE IMPACT OF RETAINED EARNINGS AS AN INTERVENING VARIABLE IN THE IMPLEMENTATION OF FREE CASH FLOW, FUNDING POLICIES, PROFITABILITY AND COLLATERAL ASSETS AS A BENCHMARK FOR DIVIDEND POLICY (The empirical study of Manufacturing Companies listed on the IDX for the 2013-2017 period)

Abstract

This research takes the object of manufacturing companies in the consumer goods industry sector listed
in BEI for the 2013-2017 period. The purpose of the research is to know and test empirically how the impact of
retained earnings asa an intervening variable in influencing positively on the application of free cash flow,
funding policy, profitability and collateral assets as a benchmark for determining dividend policy. There were
49 companies as the research population and produced 7 sample companies with a total of 35 observations.
Data retrieval with documentation is secondary data using purposive sampling method.
Hypothesis testing using SPSS 22 program with descriptive statistical test techniques, classical
asumption test and 2-step multiple linear regression analysis. The measurement of the data using the model
feasibility test continued with path analysis and sobel test. The results of the research hypotheses, 6 hypotheses
were rejected and 7 hypotheses were accepted. From the rest results cocluded that the mediation from retained
earnings does not absolutely affect positively to dividend policy. Of course the company does not need to worry
about future impacts on return payment because basically retained earnings are not the determining factor
influencing dividend distribution decisions.
Keywords : free cash flow, funding policy, profitability, collateralassets, dividend policy , Retained Earning.