| dc.description.abstract | The company's goal is to maximize shareholder value, shareholder value
is the value of the company reduced debt. In funding decisions are decided by the
management that the company through equity financing more than the use of
financing through debt. Meanwhile, the company's free cash flow can be used as a
determinant of shareholder value by considering the contextual factors set of
investment opportunities, earnings management, leverage and dividends.
The aim of this study was to test whether free cash flow and funding
decisions capable of creating value for shareholders in companies listed on the
Indonesia Stock Exchange. This research was conducted by using descriptive
method, while the population in this study are manufacturing companies listed in
Indonesia Stock Exchange during the period 2008-2012. The sample in this study
using the technique of purposive sampling technique based on the criteria -
certain criteria. Data collected literature (Library Research).
Through the medium of literature in the form of books, journals,
Indonesian Capital Market Directory, and other literature related to the problems
examined. Then the data analysis used in this study using multiple linear
regression analysis, while the research hypothesis that will be tested using the t
test and F test.
The results showed that the free cash flow and the decision to have a
strong correlation to shareholder value. In the simultaneous test (F test) that free
cash flow and funding decisions and significant impact on shareholder value.
Partially (t test) that the cash flow negatively affect shareholder value and
funding decisions negatively affect shareholder value | en_US |
