The Effect of Asset Structure, Company Size, Profitability, and Liquidity on Corporate Debt Policy in Food and Beverage Sector Companies Listed on the Indonesia Stock Exchange in 2021-2022

Abstract

Focusing on a population of 47 food and beverage firms listed on the Indonesia Stock Exchange (IDX) from 2021 to 2024, this paper examines the effects of liquidity, profitability, company size, and asset structure on corporate debt policy. Using purposive sampling, this study obtained 188 total observations from the selected companies over four years. The research framework positions asset structure, company size, profitability, and liquidity as independent variables affecting the dependent variable, debt policy. The statistical analysis was performed using EViews 11 software by applying panel data regression through a fixed-effects model (FEM). The findings reveal that, individually, only company size demonstrated a significant negative relationship with corporate debt policy, while asset structure, profitability, and liquidity did not produce significant independent effects. When tested simultaneously, the combined variables significantly influenced debt policy. Consequently, these results indicate that although company size is the only variable that independently guides debt decisions among food and beverage firms, the overall set of financial characteristics collectively shapes corporate debt policy.