DETERMINAN CASH HOLDING PERUSAHAAN INDUSTRI MANUFAKTUR: PERSPEKTIF FINANCIAL CONSTRAINTS DAN FINANCIAL UNCONSTRAINTS

Abstract

This study aims to examine the factors of company characteristics and company ownership structure on cash holding of financial unconstraints and financial constraints in manufacturing companies. Proxy of company characteristics is represented by net working capital, leverage, and capital expenditure and proxy for the ownership structure of number block holders and insider holder and company size as proxies for control variables. This research method is quantitative research and uses secondary data. The empirical research model used to test the hypothesis using the panel data regression model, the model selected from the fixed effect method for financial constraints companies and the random effect method for financial unconstraints companies. Based on the research hypothesis, financial constraints on net working capital have a negative and significant relationship to cash holdings. Leverage on financial unconstraints companies has a negative and significant relationship with cash holding. Insider holding in financial constraints companies shows a negative and significant relationship.