Effect of Debt Policy And Company Performance With Leverage As Moderation

This research aims to determine the role of leverage as a moderating variable in the influence of
debt policy on company performance. This research uses quantitative methods with secondary
data obtained from the Indonesia Stock Exchange website and the company's official website. The
population in this research is food and beverage companies in the consumer goods industry sector
listed on the Indonesia Stock Exchange in 2019-2021. Panel data regression analysis testing uses
STATA 17. The results of this research show that: 1) Debt policy has a negative effect on company
performance. Excessive use of debt causes an increase in the company's risk in generating profits
and will cause shareholders to doubt the company's ability to pay the debt that has been given.
This shows that the higher the debt a company has with a large amount of debt, the higher the
company's risk will be and this will result in decreased financial performance, because higher
debt will cause financial distress. 2) Leverage weakens the relationship between debt policy and
company performance. Leverage weakens the influence of the negative relationship, which shows
that the DOL functions well in mitigating the negative impact of debt policy on company
performance so that the negative influence of debt policy on company performance can be
reduced or weakened.