The impact of growth opportunities, net working capital, and financial leverage toward the cash holding with capital expenditure as the controlling variable on consumer goods industry listed on Indonesia Stock Exchange

Phanjaya, Angelia (2021) The impact of growth opportunities, net working capital, and financial leverage toward the cash holding with capital expenditure as the controlling variable on consumer goods industry listed on Indonesia Stock Exchange. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

There are various motives why companies need to retain cash; given the transaction, precautionary and speculative objective. Company should retain cash wisely, too much or little cash hold will cause the company troubled. Theoretically, the balance of cash should be retained where the benefit and cost of holding the cash are equal. The marginal cost of cash holding is the opportunity cost of capital invested; while the marginal benefits include reducing the likelihood of financial distress and minimizing the cost of external funding. This research aims to identify significant factors that affect the level of cash holding of 28 consumer goods companies listed in the Indonesia Stock Exchange for the year 2017 to 2020. The factors used in this research are growth opportunities, net working capital and financial leverage. Other that these variables, this research also will be using capital expenditure as controlling variables. Using the purposive sampling method, a total of 28 companies are chosen out of 65 companies. This research is using multiple linear regression model in the analysis. The result of this study shows that growth opportunities has a significant positive partial effect on cash holding. Net working capital has a significant negative effect on cash holding. Financial leverage has significant negative partial effect on cash holding. Simultaneously, growth opportunities, net working capital and financial leverage have significant effect on cash holding with capital expenditure being controlled./Ada berbagai motif perusahaan menahan kas; baik untuk tujuan transaksi, berjaga-jaga dan spekulatif. Secara teoritis, saldo kas harus dipertahankan di mana manfaat dan biaya memegang kas adalah sama. Biaya marjinal memegang uang tunai adalah biaya peluang modal yang diinvestasikan; sedangkan manfaat marjinal termasuk mengurangi kemungkinan kesulitan keuangan dan meminimalkan biaya pendanaan eksternal. Penelitian ini bertujuan untuk mengidentifikasi faktor-faktor signifikan yang mempengaruhi tingkat cash holding dari 28 perusahaan barang konsumsi yang terdaftar di Bursa Efek Indonesia selama tahun 2017 sampai 2020. Faktor-faktor yang digunakan dalam penelitian ini adalah growth opportunities, net working capital dan financial leverage. Selain itu, penelitian ini juga menggunakan capital expenditure sebagai variabel pengendali. Dengan menggunakan metode purposive sampling, dari 65 perusahaan dipilih 28 perusahaan. Penelitian ini menggunakan model regresi linier berganda dalam analisisnya. Hasil penelitian ini menunjukkan bahwa growth opportunities berpengaruh positif signifikan terhadap cash holding. Modal kerja bersih berpengaruh negatif signifikan terhadap cash holding. financial leverage berpengaruh negatif signifikan secara parsial terhadap cash holding. Secara simultan growth opportunity, net working capital dan financial leverage berpengaruh signifikan terhadap cash holding dengan capital expenditure dikendalikan.

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