The Effect of Company Sizes and Net Working Capital on Cash Holding With Profitability as Intervening Variables in Food and Beverage Sub Sector Companies Registered in Indonesia Stock Exchange

Abstract

The COVID-19 pandemic that has hit the world including Indonesia since early 2020 has had The purpose of this study was to determine and analyze the influence of company size and net working capital towards holding cash with profitability as an intervening variable. This Research uses quantitative methods with 2013-2017 observation years. The research sample consisted of 15 food and beverage sub-sector companies listed on the Indonesia Stock Exchange, while the method used was purposive sampling. The analytical method used is multiple linear regression and path analysis. The results showed the size of the company had a negative and not significant effect on profitability, net working capital was positive and not significant on profitability. Company size, net working capital, and profitability have a positive and significant influence on cash holding. Profitability is not able to mediate the effect of company size on cash holding.But profitability is able to mediate the effect of net working capital on cash holding

The importance of net working capital in the hotel companies’ liquidity assessment

“…A study conducted by Apak et al (2016) revealed both short-term and long-term bank loans and their impact on cash, current assets and short-term liabilities of companies in the long term, observed in a sample of companies selected from all sectors in Turkey in the period from 1996-2014. Company size had a negative and not statistically significant impact on profitability, whereas net working capital had a positive and not statistically significant impact, according to Awaluddin et al (2020). The impact of company size, net working capital, and profitability on cash holdings is positive and statistically significant.…”

Pengaruh Perputaran Modal Kerja, Likuiditas, Dan Ukuran Perusahaan Terhadap Profitabilitas Perusahaan Sektor Makanan Dan Minuman

“…Hal ini menjelaskan bahwa semakin besar ukuran perusahaan, maka semakin besar profitabilitas untuk melakukan peningkatan laba, karena perusahaan dengan total asset yang besar mencerminkan kemapanan perusahaan (Ambarwati, 2015). Didukung pula oleh penelitian (Pradnyanita Sukmayanti & Triaryati, 2019), (Awaluddin et al, 2020) serta (Hasangapon et al, 2021) bahwa ukuran perusahaan berpengaruh positif terhadap profitabilitas.…”

Determinants Of Cash Holding: Studi Empiris pada Perusahaan Wholesale Terdaftar di BEI Tahun 2017-2021

“…Pada tahun 1984, Myers & Majluf mencetuskan teori pecking order (Nafees et al, 2017). Menurut teori ini terdapat tingkatan sumber dana yang diprioritaskan oleh manajer keuangan untuk digunakan lebih dahulu yang diawali dengan penggunaan dana internal lalu penambahan utang dan diakhiri penerbitan saham baru (Awaluddin et al, 2020). Teori ini mengacu pada perilaku keuangan perusahaan yang cenderung lebih memilih sumber keuangan internal daripada sumber keuangan eksternal untuk membiayai operasional perusahaan.…”

“…Menurut (Awaluddin et al, 2020) perusahaan berukuran besar lebih terdiversifikasi dalam usaha operasionalnya dan lebih sedikit kemungkinan mengalami financial distress sehingga ia memiliki performa yang lebih baik daripada perusahaan kecil dan memiliki kas yang lebih banyak. Hasil berbeda ditemukan oleh (Suherman, 2017) yaitu ukuran perusahaan berpengaruh negatif terhadap cash holding.…”