Determinant of Corporate Cash Holding: Evidence From LQ45 Index Companies on Indonesia Stock Exchange

Ainul Ridha; Dewi Sari; Intan Astuti; Dara Soufyan

Proceedings of the 3rd International Conference on Advance & Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia

Research Article

Determinant of Corporate Cash Holding: Evidence From LQ45 Index Companies on Indonesia Stock Exchange

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@INPROCEEDINGS{10.4108/eai.20-6-2020.2300683,
    author={Ainul  Ridha and Dewi Maya Sari and Intan Novia Astuti and Dara Angreka Soufyan},
    title={Determinant of Corporate Cash Holding: Evidence From LQ45 Index Companies on Indonesia Stock Exchange},
    proceedings={Proceedings of the 3rd International Conference on Advance \& Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia},
    publisher={EAI},
    proceedings_a={ICASI},
    year={2020},
    month={9},
    keywords={study profitability institutional ownership},
    doi={10.4108/eai.20-6-2020.2300683}
}

Ainul Ridha
Dewi Maya Sari
Intan Novia Astuti
Dara Angreka Soufyan
Year: 2020
Determinant of Corporate Cash Holding: Evidence From LQ45 Index Companies on Indonesia Stock Exchange
ICASI
EAI
DOI: 10.4108/eai.20-6-2020.2300683

Ainul Ridha¹, Dewi Maya Sari²^,*, Intan Novia Astuti¹, Dara Angreka Soufyan³

1: Accounting Department, Sekolah Tinggi Ilmu Ekonomi Sabang, Banda Aceh, Indonesia
2: Public Sector Accounting Department, Politeknik Aceh, Banda Aceh, Indonesia
3: Accounting Department, Universitas Teuku Umar, Meulaboh, Indonesia

*Contact email: dewi@politeknikaceh.ac.id

Abstract

This study aims to examine the effect of institutional ownership, profitability and firm size on the cash holding of the LQ45 Index Companies on the Indonesia Stock Exchange. The population of this study is the company of LQ 45 Index on the IDX for the period 2015-2017. A total of 210 companies were determined target populations based on certain criteria. This study uses a regression method for panel data, namely by looking at random effects based on the Hausman test results. The results show that institutional ownership, profitability and firm size have a positive effect on cash holding. The findings are useful for managers, shareholders, investors, regulators and researchers in developing suitable policies

Keywords: study profitability institutional ownership

Published: 2020-09-14
Publisher: EAI

: http://dx.doi.org/10.4108/eai.20-6-2020.2300683

Determinant of Corporate Cash Holding: Evidence From LQ45 Index Companies on Indonesia Stock Exchange

Abstract

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