Analisis Pengaruh Liquid Asset Substitutes, Cash Flow Volatility, dan Gross Domestic Product terhadap Cash Holding pada Perusahaan Sektor Perbankan di Bursa Efek Indonesia Periode 2019-2021

Abstract

his study aims to analyze the effect of Liquid Asset Substitutes (LAS),
Cash Flow Volatility (CFV), and Gross Domestic Product (GDP) on Cash
Holding in banking sector companies listed on the Indonesia Stock
Exchange during the 2019-2021 period. This study uses a quantitative
approach with an explanatory research type. Secondary data were
obtained from the company's annual report, which was analyzed using
panel data regression with a random effect model.
The results of the study indicate that CFV has a significant positive effect
on Cash Holding, reflecting the need for companies to maintain higher
cash reserves in the face of cash flow uncertainty. GDP also has a
significant positive effect on Cash Holding, indicating that economic
stability and growth encourage companies to increase cash liquidity.
However, LAS does not show a significant effect on Cash Holding,
indicating that banking sector companies rely more on cash reserves than
other liquid assets in managing liquidity.
This study makes an important contribution to understanding the factors
that influence Cash Holding policies in the banking sector. The practical
implications of this study can help financial managers in designing optimal
cash management strategies, especially in the face of cash flow volatility
and macroeconomic dynamics.