Corporate Governance In Cash Management, Net Working Capital, And Cash Holding

Henny Wirianata; Viriany; Ignatius Flora De Mayo

doi:10.24912/ja.v27i1.1246

Authors

Henny Wirianata Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia
Viriany Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia
Ignatius Flora De Mayo Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia

DOI:

https://doi.org/10.24912/ja.v27i1.1246

Keywords: Cash Management; Net Working Capital; Board Of Commissioners’ Activities; Cash Holdings.

Abstract

Manufacturing companies need effective cash management to meet their capital expenditures and cash holding. Effective cash management needs to be supported by good governance so that it can determine adequate cash holding. Independent variables in this study were measured by cash flow, cash conversion cycle, capital expenditure, net working capital, and board of commissioners' activities. Governance measured by the board of commissioners' activities is also a moderation variable. The data in this study were processed and analyzed using Eviews 10 for the period 2017 to 2020. The panel's data regression results show that the cash conversion cycle and net working capital have a negative influence on cash holding. Cash flow, capital expenditure, and board of commissioners' activities have no effect. The moderation regression test results show that the board of commissioners' activities could not moderate the influence of cash flow, cash conversion cycle, capital expenditure, and net working capital on cash holding.

Author Biographies

Henny Wirianata, Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia

hennyw@fe.untar.ac.id

Viriany, Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia

viriany@fe.untar.ac.id

Ignatius Flora De Mayo, Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia

ignatiusflorademayo@gmail.com

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