This research focuses on whether corporate liquidity in a company is affecting the probability of it being a bidder, especially when there is tunneling present. Corporate liquidity is represented by the cash holding or excess cash in a company. Cash holding is calculated using the fixed effects model. The probability of being bidder which is the M&A decision is determined by using a dummy variable using probit regression model. The sample used 240 listed company in Indonesia Stock Exchange (IDX) within the period of 11 years (2006 – 2016) with the total observations of 2640. The model used in this research is determined using the Hausman test, and chow test. The diagnostic test conducted in this research is heteroskedasticity, autocorrelation, and cross dependence, with heteroskedasticity for probit model using bootstrap. The result obtained from this research shows that the probability of being a bidder would decrease with the level of excess cash held. Tunneling also does not add more effect in the probability of a company being a bidder. This differences might be due to the difference in accounting standards used.