Research Article
The Driver Of The Increase In Cash Holding In The Basic Chemical Industry
@INPROCEEDINGS{10.4108/eai.2-8-2023.2341614, author={Aliffia Nur Fauziah and Marista Oktaviani and Budi Wahyu Mahardhika and Rieska Maharani}, title={The Driver Of The Increase In Cash Holding In The Basic Chemical Industry}, proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia}, publisher={EAI}, proceedings_a={ICEB}, year={2024}, month={6}, keywords={debt to asset ratio current ratio earning per share cash holding}, doi={10.4108/eai.2-8-2023.2341614} }- Aliffia Nur Fauziah
Marista Oktaviani
Budi Wahyu Mahardhika
Rieska Maharani
Year: 2024
The Driver Of The Increase In Cash Holding In The Basic Chemical Industry
ICEB
EAI
DOI: 10.4108/eai.2-8-2023.2341614
Abstract
Cash availability is a critical component of business development for manufacturing enterprises operating in the basic and chemical industries considering that the company's cash is its most liquid asset, is used to finance the needs in operational activities in order to expand, invest, and also pay. As a result, the business needs to manage its finances well to ensure that it has enough cash on hand to meet its needs without going overboard. Determining the impact of Earning Per Share, Current Ratio, and Debt to Asset Ratio on Cash Holding was the goal of this study. This kind of study is done using numbers. Multiple linear regression analysis is used in this study design. This study's sampling strategy uses purposive sampling method. The outcomes of this study examination Cash holding is significantly impacted by both the current ratio and earnings per share. On the other hand, cash holding is mostly unaffected by the debt to asset ratio. Every independent variable influences the dependent variable concurrently.
