Title: COMPANY CHARACTERISTICS, MACROECONOMIC VARIABLES, AND CASH HOLDINGS OF NON-FINANCIAL COMPANIES IN INDONESIA AND SINGAPORE

Author: ADYANTO BUDI RACHMANSYAH

Item Type: Thesis

Affiliations: Master of Science in Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This study aims to examine the influence of company characteristics and macroeconomic variables on cash holdings. Company characteristics include company size, leverage, profitability, dividend payments, capital expenditure, and cash flow. The macroeconomic variables used are inflation and economic growth. The sample used in this study is non-financial companies listed on the Indonesia Stock Exchange during the 2011-2016 period and non-financial companies listed on the Singapore Exchange during the 2011-2016 period. Multiple linear regression analysis is used to test the hypothesis. The results of the study in Indonesia indicate that company characteristics variables, namely company size, profitability, dividend payments, and cash flow have a positive influence while the variables of leverage and capital expenditure have a negative influence on cash holdings. All macroeconomic variables, namely inflation and economic growth, have no influence on cash holdings. The results of the study in Singapore indicate that company characteristics variables, namely profitability, dividend payments, and cash flow have a positive influence while the variables of company size, leverage, and capital expenditure have a negative influence on cash holdings. The macroeconomic variables of economic growth have a positive influence while inflation has a negative influence on cash holdings.

Keywords: Cash holdings, company size, leverage, profitability, dividend payments, capital expenditure, cash flow, inflation, economic growth.

Sources: http://repository.unair.ac.id/87810/