Departemen Manajemen Fakultas Ekonomika dan Bisnis Universitas Diponegoro

Abstract

ABSTRACT This study aims to analyze the effect of firm size (SIZE), leverage (LEV), dividend payment (DIVID), profitability (PROF), growth opportunity (GROWTH), capital expenditure (CAPEX), net working capital (NWC), and operating cash flow (OCF) variables empirically on the determination of cash holding policy (CASH) in non-financial shariah companies listed on the Jakarta Islamic Index (JII) in the period 2018-2022. This research uses secondary data collected from Bloomberg financial data. The data used is in the form of financial statements of non-financial shariah companies from 2018-2022. Based on a total of 70 available shariah companies, 56 companies were selected as samples in this study. The data was then compiled and analyzed using the panel data regression analysis method. Based on the result of hypothesis testing through the F test, it can be concluded that the variables SIZE, LEV, DIVID, PROF, GROWTH, CAPEX, NWC, and OCF jointly affect CASH. Furthermore, the t test proves that the variables SIZE, CAPEX, NWC, and OCF have a significant positive effect on CASH. Meanwhile, the DIVID variable has a significant negative effect on CASH. LEV, variable has a negative effect, PROF and GROWTH have a positive effect, but three are insignificant to CASH.