Title: INFLUENCE OF EARNINGS QUALITY, POLITICAL CONNECTIONS AND GOVERNANCE ON CASH HOLDINGS
Author: AMALIA HASTA INSANI
Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This research aims to examine the influence of earnings quality, political connections and corporate governance on cash holdings. This research uses a sample of companies from all sectors except financial sector companies listed on the Indonesia Stock Exchange for the 2015-2017 period. The total sample in this study was 369 for 2015, 374 for 2016, and 377 for 2017 with 1,120 observations. The analysis technique used in this research is multiple linear regression analysis with the STATA 13.0 program. Earnings quality is measured using the total current accrual formula, political connections are measured using dummy variables measuring government political connections and board political connections are measured using ratios, while governance uses an index. Meanwhile, cash holdings uses the logarithm of cash divided by net assets. The results of the research are (1) earnings quality has a negative effect on cash holdings. (2) Companies that have political connections with the government have a positive effect on cash holdings. (3) A politically connected board of directors has no influence on cash holdings. (4) Governance has a positive effect on cash holdings.
Keywords: Earnings quality, political connections, corporate governance, cash holdings
Sources: http://repository.unair.ac.id/87239/
