The Effect of Capital Expenditure, Sales Growth, And Leverage on Cash Holdings
DOI:
https://doi.org/10.38043/jiab.v8i2.4666Keywords:
Cash Holdings, Capital Expenditure, Sales Growth, LeverageAbstract
The maintenance of cash holdings is an essential element in ensuring the financial stability of a company. The utilisation of cash holdings might be advantageous for companies seeking to capitalise on investment prospects or finance their expansion strategies. The maintenance of a robust cash holdings enables organisations to promptly capitalise on favourable investment prospects that may emerge within the market. The purpose of this study is to examine the effect of capital expenditure, sales growth, and leverage on cash holdings. The research population is non-cyclical sector companies, totalling 61 companies in Indonesia Stock Exchange (IDX). Data testing was carried out based on secondary data collected, namely the annual reports of each company between 2017 and 2021. The technique used is quantitative by measuring research variables indicators and testing them with statistical analysis. This research utilized a sample of 61 companies that were selected by the purposive sampling method. Multiple regression was used to analyze the data. The findings of this research show that capital expenditure has a negative effect on cash holdings, the sales growth rate has a positive effect on the cash holdings of the company, and leverage has no effect on cash holdings. The findings of this study will provide valuable insights for policy-makers and stakeholders in making informed strategic business decisions regarding cash holdings.
Downloads
References
Afolabi, A., Olabisi, J., Kajola, S. O., & Asaolu, T. O. (2019). Does leverage affect the financial performance of Nigerian firms? Journal of Economics and Management, 37(3), 522. https://doi.org/10.22367/jem.2019.37.01
Ambrose, B. W., & Steiner, E. (2019). Economic Fundamentals, Capital Expenditures and Asset Dispositions (SSRN Scholarly Paper 3040229). https://doi.org/10.2139/ssrn.3040229
Aono, K., & Hori, K. (2021). Measuring the Value of Corporate Cash Holdings against Predictable and Unpredictable Negative Shocks (SSRN Scholarly Paper 3836634). https://doi.org/10.2139/ssrn.3836634
Aspasia, D. B. A., & Arfianto, E. D. (2021). Analisis Pengaruh Firm Size, Growth Opportunity, Firm Age, Leverage, Dan Non-Cash Net Working Capital Terhadap Cash Holding (studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2019). Diponegoro Journal of Management, 10(1). https://ejournal3.undip.ac.id/index.php/djom/article/view/30905
Cai, Y. (2018). Competitive Position and Cash Holdings: Evidence from Japaneses Listed Firms (SSRN Scholarly Paper 3243244). https://doi.org/10.2139/ssrn.3243244
Chrisidu-Budnik, A., & Przedaska, J. (2017). The Agency Theory Approach to the Public Procurement System. Wroclaw Review of Law, Administration & Economics, 7(1), 154165. https://doi.org/10.1515/wrlae-2015-0059
Darmawan, R., Halim, K. I., & Ricky. (2023). Analisis Determinan Kebijakan Pembayaran Dividen Kas. Proceeding National Seminar on Accounting UKMC, 2(1), Article 1. https://journal.ukmc.ac.id/index.php/pnsoa/article/view/906
Denis, D. J., & Wang, L. (2023). Corporate Cash Holdings (SSRN Scholarly Paper 4425890). https://doi.org/10.2139/ssrn.4425890
Fitzsimmons, J., Steffens, P., & Douglas, E. (2005). Growth and Profitability in Small and Medium Sized Australian Firms (SSRN Scholarly Paper 1263734). https://doi.org/10.2139/ssrn.1263734
Frank, M. Z., Goyal, V. K., & Shen, T. (2020). The Pecking Order Theory of Capital Structure: Where Do We Stand? (SSRN Scholarly Paper 3540610). https://doi.org/10.2139/ssrn.3540610
Hadiwijaya, I., & Trisnawati, E. (2019). Pengaruh Arus Kas Dan Belanja Modal Terhadap Cash Holding Pada Perusahaan Manufaktur. Jurnal Paradigma Akuntansi, 1(2), Article 2. https://doi.org/10.24912/jpa.v1i2.5010
Halim, K. I. (2018). Analisis Faktor-faktor yang Memengaruhi Tingkat Cash Holding pada Perusahaan Manufaktur yang Listing di Bursa Efek Indonesia. MABIS, 9(1). https://journal.widyadharma.ac.id/index.php/mabis/article/view/670
Kheng, Idris, & Mohamed. (2016). A multiple regression model of statistical reasoning: A Malaysian context. OIDA International Journal of Sustainable Development, 9(10).
Kim, S., Saha, A., & Bose, S. (2021). Do capital expenditures influence earnings performance: Evidence from lossmaking firms. Accounting & Finance, 61(S1), 25392575. https://doi.org/10.1111/acfi.12675
Kudu, A. L. T. D., & Salim, S. (2021). Pengaruh Leverage, Capital Expenditure, Dan Net Working Capital Terhadapcash Holding Perusahaan. Jurnal Paradigma Akuntansi, 3(2), Article 2. https://doi.org/10.24912/jpa.v3i2.11691
Mahmutaj, L. R., & Krasniqi, B. (2020). Innovation Types and Sales Growth in Small Firms: Evidence from Kosovo. South East European Journal of Economics and Business, 15(1), 2743. https://doi.org/10.2478/jeb-2020-0003
Marcel, S., & Susanto, L. (2021). Faktor-Faktor Yang Berpengaruh Terhadap Cash Holdings. Jurnal Paradigma Akuntansi, 3(2), Article 2. https://doi.org/10.24912/jpa.v3i2.11809
Mesfin, E. A. (2016). The Factors Affecting Cash Holding Decisions of Manufacturing Share Companies in Ethiopia (SSRN Scholarly Paper 3386930). https://papers.ssrn.com/abstract=3386930
Mulia, G. V., & Yuniarwati. (2022). Pengaruh Leverage, Sales Growth Dan Board Size Terhadap Cash Holding. Jurnal Paradigma Akuntansi, 4(2), Article 2. https://doi.org/10.24912/jpa.v4i2.19574
Octavian, G. A., Sufiyati, & Wirianata, H. (2022). Faktor Yang Mempengaruhi Cash Holding Perusahaan Manufaktur Di Indonesia Tahun 2017-2019. Jurnal Paradigma Akuntansi, 4(2), Article 2. https://doi.org/10.24912/jpa.v4i2.19555
Rai, ., & Stanii, N. (2017). Analysis of the determinants of corporate cash holdings: Examples from companies in Serbia. The European Journal of Applied Economics, 14(1), 1323. https://doi.org/10.5937/ejae14-13574
Suntraruk, P. (2023). The Mediating Effect of Profitability on the Relationship Between Working Capital Management and Sustainable Growth. Studies in Business and Economics, 18(1), 314327. https://doi.org/10.2478/sbe-2023-0017
Valeria, S., & Halim, K. I. (2022). Pengaruh Konservatisme Akuntansi, Return On Assets, Pertumbuhan Penjualan, Dan Firm Size Terhadap Kualitas Laba. Proceeding National Seminar on Accounting UKMC, 1(1), Article 1. https://journal.ukmc.ac.id/index.php/pnsoa/article/view/615
Wibowo, W. C., & Wahyudi, S. (2019). The effect of financial performance, IOS, and firm size on cash holdings: The role of dividend policy as moderating variable. Diponegoro International Journal of Business, 2(2), 96106. https://doi.org/10.14710/dijb.2.2.2019.96-106
Zefanya, Z. E., & Susanto, L. (2020). Pengaruh leverage, firm size, likuiditas dan profitabilitas terhadap cash holding. Jurnal Paradigma Akuntansi, 2(1), Article 1. https://doi.org/10.24912/jpa.v2i1.7131
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Kusuma Indawati Halim, Novianty
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
