Proceedings of the 25th International Academic Conference, OECD Headquarters, Paris

THE INFLUENCE OF DIVIDEND PAYMENTS, PROFITABILITY, LIQUIDITY AND FIRM SIZE FOR CASH HOLDINGS – CASE OF INDONESIAN MANUFACTURING COMPANIES

HERU FAHLEVI, MUHAMMAD ARFAN, HAFIDAH HAFIDAH

Abstract:

This study is aimed at examining the influence of dividend payments, profitability, liquidity, and firm size for cash holdings in manufacturing companies. The population of this study was manufacturing companies listed in Indonesia Stock Exchange between 2010 and 2014. The population of this study was manufacturing companies that listed in Indonesia Stock Exchange which published financial statements by December 31st and paying dividend payments respectively during the observation period (2010-2014). This study used census method and collected cross-sections data. Thus, 32 companies were selected or 160 observation data were analysed. The data was collected from published financial statements. The analysis method used in this study was multiple linear regression. This study found that dividend payments, profitability, liquidity, and firm size both collectively and individually have an effect on cash holdings in the manufacturing companies. Therefore, the results are consistent with previous research findings, although it was carry out in a single industry and in a developing country.

Keywords: Dividend Payments, Profitability, Liquidity, Firm Size, Cash Holdings

DOI: 10.20472/IAC.2016.025.021

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