ANALYSIS OF FACTORS AFFECTING CASH HOLDINGS (A STUDY ON A BUILDING CONSTRUCTION COMPANY LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2014-2018 PERIOD)

Abstract

This study aims to provide an overview of how the cash conversion cycle, net working capital, growth opportunity, institutional ownership, independent board of commissioners, and cash holdings in building construction companies listed on the Indonesia Stock Exchange for the period 2014-2018. As well as knowing the effect of cash conversion cycle, net working capital, growth opportunity, institutional ownership, and independent board of commissioners on cash holdings, either partially or simultaneously. The research method used is descriptive method and verification method. The population of this study are 19 building construction companies listed on the Indonesia Stock Exchange for the period 2014-2018. The sampling technique was carried out by purposive sampling method which resulted in 7 companies that met the criteria. The data analysis method of this research is multiple linear regression analysis, classical assumption test, correlation analysis, and coefficient of determination. While the hypothesis testing used is the statistical method of partial test (t test) and simultaneous test (F test) using IBM SPSS 25. The results show that partially cash conversion cycle, net working capital, growth opportunity, and institutional ownership have an effect on cash holdings. . Meanwhile, the independent board of commissioners partially has no effect on cash holdings.