Analysis of Factors Affecting Zero-Leverage Policy in Companies During Global Crisis in Indonesia

This paper examines the impact of the financial crisis on the collectivity of zero-leveraged companies in Indonesia during the period 2008-2012. Since recent evidence indicates that the financial crisis does not have a fundamental impact on zero-leveraged companies in the United States, this encourages researchers to see if zeroleveraged companies in Indonesia have the same characteristics. The data of this research are collected through Refinitiv Eikon screener. The object of this research is unlevered companies (zero levered firms) where these companies have a total debt value of zero. The analytical methods this research used is T-Test and Probit Regression for testing hypothesis (alpha=5%, 1%, 0,01%). After controlling for the variables that affect the zero-leveraged firms, the results show that the global economic crisis on companies with zero-leverage has no significant effect on the zero-leverage policy.