PENGARUH FREE CASH FLOW DAN PROFITABILITAS TERHADAP INVESTMENT OPPORTUNITY SET PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Rini Dian Sari, 2012; The Influence of Free Cash Flow and Profitability toward Investment opportunity set on Company listed in Indonesian Stock Exchange. The purposes of this research are 1) to know the influence of the free cash flow toward investment opportunity set, 2) to know the influence of the profitability toward investment opportunity set, and 3) to know the influence of the free cash flow and profitability toward investment opportunity set. Data in this research are taken from companies listed in Indonesian Stock Exchange over three years for period 2009 until 2011. This research used the purposive sampling method. The sample of this research consists of 39 companies that meet the criteria. Proxies are used to Investment Opportunity Set in this research is market to book value ratio of assets (MVABVA). The method of data analysis in this research is the method of statistical analysis with using Statistical Product and Service Solution (SPSS) program version 16 with multiple linear regression approach. The results of this research indicate that : 1) Free cash flow has significant influence toward investment opportunity set 2) Profitability has significant influence toward investment opportunity set and 3) Free cash flow and profitability have significant influence simultaneously toward investment opportunity set. Keywords : Free cash flow, Profitability and Investment opportunity set