The Effects of Liquidity, Company Growth, and Net Working Capital on Corporate Cash Holding Among Manufacturing Companies Listed in Indonesia Stock Exchange During 2015 - 2020

Abstract

Cash is a current asset used as a mean of payment and can also be withdrawn whenever the company needs it. Therefore, we need to pay attention to the cash management of the company, by optimizing the amount of cash managed. The purpose of this study was to examine the effects of liquidity, company growth, and net working capital on corporate cash holding among manufacturing companies listed in the Indonesia Stock Exchange (IDX). The data in this study was analysed using panel data regression analysis consisting of 35 companies for the 2015-2020 period. This study used the purposive-sampling technique. The data used was in the form of secondary data, namely financial statements. Data was processed using EViews application version 11. This study reveals that Liquidity has a negative but insignificant effect on Cash Holding. Meanwhile, Assets Growth and Net Working Capital (partially) positively and significantly affect Cash Holding.