Effect of Growth Opportunity, Cash Flow and Capital Expenditure to Cash Holding

(Case Study on a Registered Consumer Goods Company on the Indonesia Stock Exchange 2018-2021)

Dikcy Alfian Nuryatno Economics and Business/Accounting, Muhammadiyah University of Surakarta

Suyatmin Waskito Adi Economics and Business/ Muhammadiyah University of Surakarta

Abstract: This study discusses the influence of growth opportunity, cash flow and capital expenditure on cash holdings in consumer good companies listed on the IDX from 2018 to 2021. The sample in this study was 35 companies. In determining the sample used by purposive sampling method, namely selection with certain criteria. This study uses multiple regression analysis tests that are strengthened by the F test and R test. This study also uses the classic assumption test to determine whether the data used passes or does not pass the classical assumption test, in the classic assumption test four tests are used, namely, normality test, heteroscedasticity test , multicollinearity test and autocorrelation test. Data processing in this study was assisted by SPSS version 25 for Windows. This research includes causal associative research, namely research that asks the relationship of two or more variables. A causal relationship is a cause-and-effect relationship. From this research, a theory can be built that functions to explain a symptom and the influence between variables

Keywords: Growth Opportunity, Cash Flow, Capital Expenditure, Cash Holding.

I. PRELIMINARY

Cash is the company's most liquid asset that can be used easily for the company's operational activities and can also be used to pay off the company's short-term liabilities or solve a company's liquidity problems. The availability of cash is very important in a company, especially in the transactional and operational activities of the company. The availability of cash is very important in a company, especially in the transactional and operational activities of the company, therefore the company must have a good cash management system in managing cash flow. Good cash management in a company can maximize financial management in a company. Cash in the company needs to get attention from management. Because when a company runs out of cash, it is difficult to meet short-term needs. Thus causing the company to be seen as bad and illiquid, which ultimately raises doubts from other parties in the company because of the bad image generated by the company. Funds in the cash are one form of funds that are useful as a source of company activities. These funds are included in critical or liquid current assets. Cash funds that are withheld have the aim of making the owner of the funds prosperous. In addition, it can also be used as an investment in order to gain profits to meet company needs which ultimately raises doubts from other parties to the company because of the bad image generated by the company. Funds in the cash are one form of funds that are useful as a source of activity for a company. These funds are included in critical or liquid current assets. Cash funds that are withheld have the aim of making the owner of the funds prosperous. In addition, it can also be used as an investment in order to gain profits to meet company needs which ultimately raises doubts from other parties to the company because of the bad image generated by the company. Funds in the cash are one form of funds that are useful as a source of activity for a company. These funds are included in critical or liquid current assets. Cash funds that are withheld have the aim of making the owner of the funds prosperous. In addition, it can also be used as an investment in order to gain profits to meet