The Debt Policy was affected by Institutional Ownership, Company Size, and Profitability at The Customer Goods Companies in Indonesia

This study aims to analyze the effect of institutional ownership, firm size and return on assets (ROA) on the policy of debt equity ratio (DER). The research method uses quantitative research methods with panel data to prove the hypothesis. The data is taken from the financial statements of consumer products companies in the 2016-2019 research period. The sample selection used purposive sampling method with certain criteria and obtained 15 companies or 60 observations. Based on data processing that has been done with Eviews ver.9 reveals that the institutional ownership affects significantly on the debt equity ratio policy, while company size and return on assets do not affect the debt equity ratio policy at all. The results of this study indicate how the strategic role of institutional shareholders in influencing the debt policy. The implications of the results of this study on consumer product companies are in selecting and determining competent and responsible institutional ownership in order to produce a DER policy that does not harm the company.