The Effect of Tangibility, Profitability, and Firm Size on Financing Policy with Debt: Evidence from Companies in the Consumer Goods Industry

This research is expected to check the influence of tangibility, profitability, and firm size on financing policy with debt. Moreover, to implement this purpose, this study employs the Indonesian-listed companies in the consumer goods industry between 2018 and 2020. Once calculating the sample size by the Slovin formula, twenty-one firms are obtained. Additionally, this study utilizes the probability of t-statistic for the related regression coefficients to examine hypotheses. After testing them, this study demonstrates that tangibility and company size positively affect the financing policy with debt; however, the more profits, the less debt to finance the assets.