The Effect of Business Group Affiliation on Corporate Cash Holdings: Evidence from an Emerging Market Economy
The Effect of Business Group Affiliation on Corporate Cash Holdings: Evidence from an Emerging Market Economy
Author(s): Suherman Suherman, Taufik Hidayat, Gatot Nazir Ahmad, Agung BuchdadiSubject(s): Economy, Supranational / Global Economy, Business Economy / Management
Published by: ASERS Publishing
Keywords: business group affiliation; cash holdings; emerging market economy;
Summary/Abstract: This study examines the effect of business group affiliation on corporate cash holdings. Sample of this study consists of 101 companies listed not consecutively on the KOMPAS100 index between 2011 and 2015 in Indonesia. From the results, it is understood that business group affiliation has a significant and positive impact on corporate cash holdings while controlling cash flow, leverage, firm size, growth opportunity, and net working capital. This means that companies affiliated with a business group have larger cash holdings when compared to companies that are not affiliated with a business group.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XIV/2019
- Issue No: 65
- Page Range: 851-856
- Page Count: 6
- Language: English
