THE INFLUENCE OF FIRM SIZE, GROWTH AND PROFITABILITY ON CASH HOLDINGS

Abstract

This study aims to analyze the effect of company size, growth, and profitability on cash holdings. The population in this study were property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2021 period. Using a purposive sampling method, 44 companies were selected with a total of 88 observation data. The analytical method used was panel data regression analysis with the Eviews 12 program. The partial results of the study (t-test) showed that company size had a significant positive effect on cash holdings; growth and profitability did not have a significant effect on cash holdings. The results (F-test) also proved that the regression model used in this study was feasible and that the three independent variables together had a significant effect on cash holdings. The implication of this study is the importance of considering company size in determining cash control policies, while growth and profitability rate are not the main indicators in determining the amount of cash that a company needs to maintain.