Determinants Cash Holding; Evidence Mining Companies Listed on Indonesia Stock Exchange During Covid-19

Abstract

This study aims to determine whether the effect of Cash flow, Net working capital, Dividend payout ratio, Leverage, and Growth opportunity on Cash holdings This type of research is quantitative by using secondary data on annual financial statements. This type of research is quantitative by using secondary data on annual financial statements. The population in the study amounted to 47 enterprises. Sampling using purposive sampling technique. Data analysis in this study uses quantitative analysis. The object of this study is a mining company listed on the Indonesia Stock Exchange in 2020 quarter period. Data analysis was carried out by classical assumption testing and hypothesis testing with multiple regression methods using the help of SPSS 25 software. The purpose of conducting this research is based on increasing competition from each company which requires companies to compete in improving achievements in the company. The novelty of this study to analyze cash holding with data during the Covid 19 pandemic in the 2020 quarter period. Where during the pandemic has influence on the Indonesian economic sector. Based on the test results, it can be concluded that Cash Flow variable has a significant positive effect on Cash Holding. The first hypothesis is accepted. Net Working Capital variable has a significant positive effect on Cash Holding. The second hypothesis is accepted. Dividend Payout Ratio has no significant effect on Cash Holding, the third hypothesis is rejected. Leverage has no significant effect on Cash Holding. The fourth hypothesis is rejected. Growth Opportunity has a significant negative effect on Cash Holding, the fifth hypothesis is accepted.There are several limitations experienced by researchers during the research process, namely in the data tabulation process and during the data processing process. Suggestions for similar research are recommended using other independent variables such as Good Corporate Governance and research samples from other company sectors. This is intended to obtain a detailed and comparable picture of cash holding management practices in various sectors of companies listed on the Indonesia Stock Exchange.

Keywords:Cash Holding, Cash Flow, Net Working Capital, Dividend Payout Ratio, Leverage, Growth Opportunity

DOI: 10.7176/EJBM/15-10-04

Publication date:May 31^st 2023