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