Identify the Determinant Factors Affecting Cash-Holding of the Automotive Industry in Indonesia

Abstract

Managers need to determine the company's optimal cash holding. However, it is also important to understand the factors that influence the company's cash holding. The study uses a panel data regression analysis tool, with a sample of 12 companies selected by purposive sampling during the 2015-2020 period. The selected regression model is the fixed effect model. The results of the investigation show that the profitability and liquidity factors have a significant effect on cash holding. Profitability has a negative effect, and liquidity has a positive effect.