Empirical analysis shows net working capital enhances cash holding, while leverage reduces it in consumer companies.
This study aims to examine the effect of net working capital, growth opportunity, and leverage on cash holding in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2023 period. The results show that simultaneously, net working capital, growth opportunity, and leverage have a significant effect on cash holding. Partially, net working capital has a significant positive effect on cash holding while growth opportunity has no effect on cash holding, and the leverage variable has a negative effect on cash holding. Future research is recommended to cover more industrial sectors as well as a longer period of time and can add other variables using different analytical methods.
No takes yet. Share an insight, caveat, or question.
Urahmah et al. (2025) studied this question.