DOES FINANCIAL NON-DISTRESS MODERATE THE INFLUENCE OF DIVIDEND POLICY AND LEVERAGE ON COMPANY’S SUSTAINABLE GROWTH?

Abstract

Sustainable growth plays a vital role in ensuring the company’s going concern. If a company can achieve growth that aligns with its sustainable growth rate, it will be more likely to maintain its business continuity. This research aims to analyze the influence of dividend policy and leverage on the sustainable growth rate of companies, with financial non-distress as a moderating variable. This research was conducted in the food and beverage sub-sector of the industrial sector listed on the Indonesia Stock Exchange from 2019 to 2023. The research population consists of 48 companies, with a sample size of 27 companies. The method of non-distress financial analysis using the Altman Z-score. The data analysis techniques include descriptive data analysis, classical assumption testing, hypothesis testing and moderation regression analysis using the Eviews program. The research findings can conclude that dividend policy has a negative and significant effect on the sustainable growth rate. Leverage has a positive and significant impact on the sustainable growth rate. Financial non-distress is not able to moderate the

relationship between dividend policy on the sustainable growth rate. Financial non- distress is able to moderate the relationship between leverage on the sustainable

growth rate.