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Abstract

This study aims to analyze the effect of profitability and free cash flow on capital structure with firm size as a moderating variable. The population in this study is the food and beverage sub-sector company on the IDX in 2011-2018. The sample used was 9 companies, which were selected based on the purposive sampling method. The data analysis technique used is multiple linear regression analysis and residual test.The results showed that the profitability variable had no effect on capital structure. While the free cash flow variable has a positive and significant effect on capital structure. In the moderation test with the residual test approach, firm size does not moderate the relationship between profitability and free cash flow on the capital structure.