Determinant of cash holdings from Indonesian public non-financial firms during Coronavirus-19 pandemic

Abstract

The Coronavirus-19 (COVID-19) pandemic has caused various impacts ranging from public health issues to weakening the world economy. Non-financial companies listed on the Indonesia Stock Exchange (IDX) have also been affected. Therefore, this study was conducted to determine cash holdings of non-financial companies on the Indonesia Stock Exchange during the COVID-19 pandemic. The study uses 548 company data on the IDX in each quarter starting from Q1 2020 to Q2 2021 by using panel data regression method to determine the relationship between the variables studied. Looking at the impact of the pandemic as represented by positive and death cases due to COVID-19 and the implementation of work-from-home policy on cash holdings of non-financial companies on the IDX, it was found that cash holding companies were significantly negatively affected by the positive case of COVID-19. Similarly, the death cases due to COVID-19 and the implementation of work-from-home policy indicated a negative impact on the company's cash holding, although not significantly. Thus, the results of this study can be used as a continuation of previous studies about research on cash holding in Indonesia.