Pengaruh Leverage, Profitabilitas, Size, Nilai Saham, Cash Holding, dan Bonus Plan terhadap Perataan Laba

Income smoothing is one way that companies do to manipulate data. Income smoothing often occurs in companies that experience losses and report profits for the next period, so that profits will look stable for the following period and the previous period, for example in a manufacturing company in the consumer goods industry sub-sector. Internal and external parties will pay attention to several factors that affect income smoothing within the company. This study aims to analyze and examine the effect of leverage, profitability, firm size, cash holding, and bonus plan on income smoothing. The population used in this study is the consumer goods industrial sub-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) in the last five years, namely 2016-2020 with a final sample of 142. The sampling method used in this study was using atechnique. Purposive sampling. The data analysis technique uses multiple regression analysis using the SPSS 26 program. The results of this study partially explain that leverage , profitability, company size, cash holding, and bonus plans affect income smoothing, while simultaneously forvariables leverage have no effect on income smoothing., the size of the company has no effect on income smoothing, and the bonus plan has no effect on income smoothing, while the profitability variable has a positive effect and cash holding has a positive effect on income smoothing.

Cash holding and investment efficiency nexus for financially distressed firms: The moderating role of corporate governance

The current research study aims to analyze the impact of cash holding on investment efficiency by moderating the role of corporate governance among financially distressed firms. The data for 14 years (2006-2019) is gathered from 400 companies of two Asian emerging economies (Pakistan and India). The results are obtained by applying a generalized method of moments (GMM), which postulates that corporate governance improves cash holding with investment efficiency in the Indian scenario and decreases in the Pakistani scenario. Concerning financially distressed firms, corporate governance strengthens the relationship of cash holding with investment efficiency in the Pakistani context but showing no moderating role in the Indian scenario. The results are helpful in cash management decisions to minimize the agency issue and to avail investment opportunities.

Analisis Faktor – Faktor yang Mempengaruhi Nilai Cash Holding Pada Perusahaan Sektor Industri Konsumsi yang Terdaftar di BEI

The consumption industry is a type of business that is developing quite rapidly in Indonesia which results in quite tight competition in the business industry in Indonesia so that it requires business people to be able to run their business and maintain their existence. This study intends to examine the effect of cash flow, growth opportunity, leverage, net profit/loss on cash holding in consumption industry companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The research uses descriptive quantitative methods. The data used is secondary data obtained from the IDX through the https://www.idx.co.id site and obtained a sample of 36 companies that meet the criteria. The data analysis techniques used are: classical assumption test, multiple linear regression and hypothesis testing which includes t test and f test. The conclusion obtained from this study is that cash flow has a positive and significant effect on cash holding, leverage has a negative and significant effect on cash holding, growth opportunity, and net profit/loss has no and no significant effect on cash holding. Based on the coefficient of determination test, it was found that the dependent variable in this study was influenced by all independent variables as much as 34.7% and the remaining 65.3% was influenced by other variables apart from this study

Evaluation of Managerial Overconfidence, Cash Holding, and Investment Efficiency in Companies

Managers’ overconfidence leads to overestimating their ability to manage cash sources. Holding more cash may result in overinvestment in projects and investment inefficiency consequently. The present study aims to investigate the effect of cash holding on investment efficiency with the moderating role of managerial overconfidence in Iranian companies. All listed firms in Tehran Stock Exchange, excluding banks, insurance, pension funds, and financial intermediaries, are included in the research. We have used data from financial statements of 91 companies over the period from 2010 to 2018 and conducted multiple regression models to test the hypotheses based on pooled and panel data set with fixed effects. The results indicate a positive relationship between managerial overconfidence and cash holding. The effect of cash holding on investment efficiency turns out to be significantly negative. Furthermore, managerial overconfidence has a significant moderating effect on the relation of the variables. This study is almost the first one, which has been done in emerging markets, so the study’s findings not only contribute to the existing literature on managerial overconfidence and investment efficiency but also assist policymakers, managers, and investors in making effective decisions.

Cash holding and performance analysis of mutual funds: a case of an emerging financial market

PurposeThis study is about the determinants of cash holding and impact of cash holding on mutual funds’ performance. In addition, the study analyzes the impact of performance-related determinants of cash holding on funds' performance.Design/methodology/approachPanel data of ten years of 190 open-end mutual funds are analyzed through fixed effect regression technique. The risk-adjusted funds' performance of cash based portfolios is computed through capital asset pricing model (CAPM) (1964), Fama and French (1993) and Carhart (1997) models.FindingsThe results indicate that small size funds, high charging front-end load funds, high turnover ratio funds, high 12-month fund returns run up, high dividend paying funds and high redemption level funds hold more cash for precautionary purpose to avoid costs of cash short-falls. Further, monthly average raw returns and risk-adjusted performance of funds with the lowest raw and residual cash holding are found higher than the funds with the highest cash holding. An increase in cash is found to dilute performance.Originality/valueThis is a pioneer study in a corporate environment with shallow capital market, reliance of businesses on bank credit, firms exposed to agency issues, wealth expropriations and existence of business groups with political linkages but with opportunities of investments due to expected favorable geo-socio-political situation. The study generates outcomes relevant for other similar economies.

A matter of others' money: How cash holdings of other firms affect a firm’s cash holding?

PurposeThis study examines the effects of comparable companies, within the same industry, on cash-holding (CH) levels of a specific firm in the Stock Exchange of Thailand (SET). Peer effects are hypothesized to affect a firm's average CH levels.Design/methodology/approachThe authors use data of listed firms in the Thai stock markets from 1995 to 2018. The sample consists of 5,277 firm-year observations. The authors perform robustness tests by incorporating gross domestic product, economy and competitiveness.FindingsPeer firms' CH levels correspond positively to the specific firm's CH. This strengthens further for firms with high cash flow volatility during periods of high competition. Unfavorable economic periods also motivate the association between a firm's CH and peer firms' CH.Practical implicationsA policy on CH should account for cash held by peer firms. Firms can justify their CH policy as compatible with peers' cash flows, especially during periods of competitiveness and an unfavorable economy.Originality/valueThe authors provide novel evidence on how emerging markets' CH levels differ from those in developed markets and propose adjusted explanations for the rivalry- and information-based theories. The findings add substantial knowledge to corporate finance by arguing that CH policies are based on peer firms' strategic moves.

THE INFLUENCE OF GROWTH OPPORTUNITY, EXPENDITURE AND COMPANY VALUE ON CASH HOLDING IN MINING SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

The aims of this study are to: (1) find out and analyze the effect of growth opportunity on cash holding, (2) find out and analyze the effect of expenditure on cash holding, (3) find out and analyze the effect of firm value on cash holding, and (4) find out and analyze the growth opportunity, expenditure and company value together have an effect on cash holding. The population in this study are all mining companies listed on the Indonesia Stock Exchange as many as 48 companies and the research sample as many as 8 companies with 5 years of observation. Data collection techniques in this study using documentation techniques. The data analysis technique in this study uses the Classical Assumption Test, Multiple Linear Regression, t-test and F-test, and the Coefficient of Determination.

Peran Tax Avoidance Dalam Mengintervening Growth Opportunity, Leverage, Firm Size, dan Profitability Terhadap Cash Holding

Tujuan penelitian ini adalah untuk mengetahui dan menganalisis peran Tax Avoidance dalam Mengintervening Growth Opportunity, Leverage, Firm Size dan Profitability terhadap Cash holding. Metode pengambilan sampel yang digunakan dalam penelitian ini adalah metode purposive sampling dan diperoleh 96 jumlah pengamatan. Data penelitian diperoleh dari laporan keuangan perusahaan Consumer Goods yang terdaftar di BEI periode 2017 sampai dengan 2020. Jenis penelitian yang digunakan adalah deskriptif kuantitatif dengan melakukan pengujian asumsi klasik dan analisis jalur yang menggunakan dua persamaan regresi linier berganda untuk mengukur pengaruh langsung dan tidak langsung. Hasil analisis hipotesis pertama menunjukkan bahwa secara simultan dan secara parsial Growth opportunity, leverage, firm size dan profitability tidak berpengaruh terhadap tax avoidance. Sedangkan untuk hipotesis kedua Growth opportunity, leverage, firm size, profitability dan tax avoidance berpengaru secara simultan terhadap cash holding, dan secara parsial leverage, firm size berpengaruh terhadap cash holding sedangkan untuk growth opportunity, profitability dan tax avoidance tidak berpengaruh terhadap cash holding.