PENGARUH LEVERAGE, LIKUIDITAS DAN FIRM SIZE TERHADAP CASH HOLDING DENGAN MODERASI FIRM SIZE
Abstract
This study aims to analyze the effects of leverage, liquidity, and firm size on cash holding, as well as to examine the moderating role of firm size in the relationship between leverage and cash holding and between liquidity and cash holding in basic and chemical manufacturing companies listed on the Indonesia Stock Exchange during 2020–2023. This study employed a quantitative approach using secondary data obtained from annual reports and audited financial statements. The sample was selected through purposive sampling, resulting in 15 companies with 60 firm-year observations. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that leverage and liquidity have negative but insignificant effects on cash holding, while firm size has a positive but insignificant effect on cash holding. The moderation test also shows that firm size does not significantly moderate the effect of leverage on cash holding or the effect of liquidity on cash holding. These findings suggest that cash holding decisions in basic and chemical manufacturing companies cannot be explained solely by leverage, liquidity, and firm size, but may also be influenced by other factors related to operational conditions, working capital needs, and industry characteristics. This study contributes to the cash holding literature by providing empirical evidence from a sector-specific setting in an emerging market context.
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