THE EFFECT OF INVESTMENT OPPORTUNITY SET AND DIVIDEND POLICY ON CASH HOLDING

Amelia Eka Putri, Sendy Dwi Haryanto, Anggita Langgeng Wijaya

Abstract


Cash holding is an important aspect of corporate financial management, as it is directly related to a company’s ability to meet its operational needs. This study aims to examine the effects of investment opportunity set and dividend policy on cash holding in consumer non-cyclicals companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2025 period. This study employs a quantitative approach using a population of 133 companies. Based on the purposive sampling technique, a sample of 80 companies that met the predetermined research criteria was obtained. The data used in this study are secondary data derived from financial statements and annual reports. Data analysis was conducted using IBM SPSS Statistics 26. The result indicate that investment opportunity set have a positive effect on cash holding. Meanwhile, dividend policy has no significant effect on cash holding.

Keywords: Investment Opportunity Set, Dividend Policy, Cash Holding


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