This study aims to obtain empirical evidence of whether the free cash flow,
profitability, liquidity, leverage and size affect the dividend policy of food and
beverage companies listed in Indonesian Stock Exchange in period 2006 to 2010.
The sampling method used purposive sampling and obtain as a sampel 11 food
and beverage companies. Analytical methods used are multiple regression test
with significance level (α) 0,05.
The results of this study concluded that free cash flow, profitability,
liquidity, leverage, and size simultaneously significant effect on dividend policy.
But partially only free cash flow, leverage, and sizea significant effect on dividend
policy, while profitability and liquidity partially no significant effect on dividend
policy.