THE INFLUENCE OF GROWTH OPPORTUNITY, NET WORKING CAPITAL, LEVERAGE, AND PROFITABILITY ON CASH HOLDING

Marisa Puji Lestari, Anggita Langgeng Wijaya, Ririh Anggraini Setyahety

Abstract


This study aims to analyze the impact of Growth Opportunity, Net Working Capital, Leverage, and Profitability on Cash Holding in healthcare sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2017 - 2024. The healthcare sector was chosen due to its unique capital-intensive characteristics and high growth potential. The sampling technique used is purposive sampling. This research employs a quantitative approach with secondary data obtained from the financial statements of 20 sample companies. Data analysis is done using multiple linear regression methods processed through SPSS 25 software. Based on the analysis results, it was found that the Growth Opportunity variable has a negative and significant impact on Cash Holding, while the Net Working Capital and Profitability variables have a positive and significant impact on Cash Holding. Meanwhile, the Leverage variable has no effect on Cash Holding. Suggestions for future research include using more diverse variables, increasing the sample size to enhance the quality of research results, and extending the research period to make the findings more relevant.

Keywords: Cash Holding, Growth Opportunity, Leverage, Net Working Capital, Profitability


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References


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