The Effect of Company Sizes and Net Working Capital on Cash Holding With Profitability as Intervening Variables in Food and Beverage Sub Sector Companies Registered in Indonesia Stock Exchange
Abstract
The COVID-19 pandemic that has hit the world including Indonesia since early 2020 has had The purpose of this study was to determine and analyze the influence of company size and net working capital towards holding cash with profitability as an intervening variable. This Research uses quantitative methods with 2013-2017 observation years. The research sample consisted of 15 food and beverage sub-sector companies listed on the Indonesia Stock Exchange, while the method used was purposive sampling. The analytical method used is multiple linear regression and path analysis. The results showed the size of the company had a negative and not significant effect on profitability, net working capital was positive and not significant on profitability. Company size, net working capital, and profitability have a positive and significant influence on cash holding. Profitability is not able to mediate the effect of company size on cash holding.But profitability is able to mediate the effect of net working capital on cash holding
Downloads
References
Afif, Saleh. Analysis of Factors Affecting Cash Holding Policy. 2016
Ali, Shaukat., Mishkat Ullah., & Nazir Ullah. Determinants Of Corporate Cash Holdings. 2015
Ardiana, Erna & M Chabachib. Analysis of the Effect of Capital Structure, Company Size and Liquidity on Firm Value with Profitability as Intervening Variables (Study of Consumer Goods Companies Registered in BEI in 2012-2016). Diponegoro Journal of Management. 7 (2), 2018.
Azlina, Nur. Effect of Growth Rate of Working Capital, Capital Structure and Firm Scale on Profitability. Journal Pekbis. 1 (2), 2009.
Bambang, Riyanto. Fundamentals of Company Spending. Yogyakarta: Bpfe, 1998.
Chotimah, Chusnul & Joni Susilowibowo. Effect of Capital Structure, Working Capital, and Sales Growth on Profitability. Journal of Management Science. 2 (2), 2014
Gill Amarjit & Shah Charul. Determinant Of Corporate Cash Holdings: Evidence from Canada. International Journal of Economics and Finance. 4 (1), 2012.
Hapsari, Ajeng A. Factors That Affect the Number of Cash Holdings in the Company. Indonesian Business Management Journal. 3 (1), October 1, 2015
Jamil, Sulaman., Amna Anwar., Naila Afzaal., Adnan Tariq., & Mohsin Asif. Determinants Of Corporate Cash Holdings: Empirical Analysis Of Pakistani Firms. Iosr Journal of Economics and Finance (Iosr-Jef). 7 (3), 2016
Jinkar, Rabecca Theresia. Analysis of Determinants of Indonesian Manufacturing Companies Cash Holding Policy . Journal of the Faculty of Economics, University of Indonesia, 2013 .
Kusumo, C Yuwono & Ari Darmawan. The Effect of Working Capital Turnover, Company Size, and Diversification on Profitability (Study of Food and Beverage Companies Registered in BEI 2013-1016). Journal of Business Administration (Jab). 57 (1), 2018.
Liadi, Cicilia Citra, & I Ketut S. Effect of Company Size, Net Working Capital, Cash Flow, and Cash Conversion Cycle on Cash Holding . E-Journal of Udayana University Accounting . 16 (2), 2018.
Liestyasih Luh P. E & Luh P Wiagustini. Effect of Firm Size and Growth Opportunity on Cash Holdings and Firm Value. E-Journal of Economics and Business, Udayana University. 6 (10), 2017.
Octaviany, Ayu. Syamsul H., & Miftahudin. Effect of Company Size and Leverage on Firm Value with Profitability as Intervening Variables. Journal of Management and Entrepreneurship Research. 3 (1), 2019.
Octaviany, Ellyn & Defi Jumadil Syahputra. The Effect of Working Capital Efficiency and Liquidity on Profitability in Pharmaceutical Sub-Sector Companies Registered in BEI. Scientific Journal of the Faculty of Economics Accounting. 1 (2), 2015.
Ogundipe, Lawrecia Olatunde, Sunday E. Ogundipe, And Samuel Kehide Ajao. Cash Holding And Firm Characteristics: Evidence from the Nigerian Emerging Market. Journal of Business, Economics and Finance. 1 (2), 2012.
Parmita, Patricia Dhiana. The Effect of Working Capital Turnover, Receivable Turnover And Firm Size On Profitability Moderated Liquidity In Pt Lk Semarang Period 2013-2016. Management Journal 2017
Prasanjaya, AA Yogi., & I Wayan Ramantha. Analysis of the Influence of Car, Bopo, Ldr Ratio and Company Size on the Profitability of Banks Registered in BEI. E-Journal of Udayana University Accounting. 4 (1), 2013.
Putra, AA Wela Yulia & Ida Bagus Badjra. Effect of Leverage, Sales Growth and Firm Size on Profitability. Eud Management E-Journal. 4 (7), 2015.
Rahmawati, Zahrotul A. Factors Affecting Cash Holding Decisions in Food and Beverages Companies Listed on the Indonesia Stock Exchange, 2013.
Sapitri, Puput. Effect of Net Working Capital, Board Size, Growth Opportunity And Cash Conversion Cycle Of Cash Holdings. 2015
Silean, Reni & Prasetiono. Analysis of Factors Affecting Cash Holding Levels at Commercial Banks Listed on the Indonesia Stock Exchange in 2011-2015. Diponegoro Journal of Management. 6 (3), 2017.
Simanjuntak, Saul F. & A. Sri Wahyudi. Factors That Affect Company Cash Holding . Journal of Business and Accounting. 19 (1), 2017.
Suhartono, Agus. Financial Management Applications and Theory. Yogyakarta: Bpfe, 2016 .
Supriadi, Yoyon., & Ratih Puspitasari. The Effect of Working Capital on Company Sales and Profitability at Pt Indocement Tunggal Prakarsa Tbk, 2011
Syafrizaliadhi, Adhitya D. & Erman D. Arfianto. Factors That Affect Cash Holding Behavior in Large Companies and Small Companies. Diponegoro Journal of Management. 3 (3), 2014
Wiradharma IG, Pusparini H, & Karim N K. Analysis Of Growth Opportunity, Net Working Capital , Leverage , And Cash Conversion Cycle Influence On Cash Holdings Of Companies From Food And Drink Sub Sector In Indonesia Stock Excange. Journal of Accounting Research . 16 (1), 2017