The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia
This study employs two models of the speed of cash holdings adjustment to measure the effect of cash management on firm value, they are the deviation standard cash holding model and partial speed of adjustment model. Using sampling companies from Indonesia during 2001-2017, the study employs some te...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Merdeka Malang
2019-04-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/2604 |
| _version_ | 1828837740297322496 |
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| author | Heru Kristanto Hendro Cahyono Mamduh M Hanafi Bowo Setiyono |
| author_facet | Heru Kristanto Hendro Cahyono Mamduh M Hanafi Bowo Setiyono |
| author_sort | Heru Kristanto Hendro Cahyono |
| collection | DOAJ |
| description | This study employs two models of the speed of cash holdings adjustment to measure the effect of cash management on firm value, they are the deviation standard cash holding model and partial speed of adjustment model. Using sampling companies from Indonesia during 2001-2017, the study employs some techniques of regression for dynamic panel data with fixed effects, the pooled ordinary least square with fixed effects, and regression moderated analysis. Research findings show that: first, the deviation standard cash holding and partial speed of adjustment affect firm value; second, by using the deviation standard cash holding model, it shows that managerial ownership, institutional ownership, investment and debt moderate the effect of the deviation standard cash holding on firm value; third, by using the partial speed of adjustment model, it shows that investment moderates the effect of partial speed of adjustment on firm value. The implications of the study are to explain two speed of cash holding adjustment models and their impacts on the increasing trend of firm value. |
| first_indexed | 2024-12-12T18:48:27Z |
| format | Article |
| id | doaj.art-5526238fdaba464281f1bde090dc3519 |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-12-12T18:48:27Z |
| publishDate | 2019-04-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-5526238fdaba464281f1bde090dc35192022-12-22T00:15:27ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872019-04-0123224625710.26905/jkdp.v23i2.2604The optimal cash holdings speed of adjustment and firm value: An empirical study in IndonesiaHeru Kristanto Hendro Cahyono0Mamduh M Hanafi1Bowo Setiyono2Department of Management, Faculty of Economics and Business, UPN "Veteran" YogyakartaDepartment of Management, Faculty of Economics and Business, Universitas Gadjah Mada Department of Management, Faculty of Economics and Business, Universitas Gadjah MadaThis study employs two models of the speed of cash holdings adjustment to measure the effect of cash management on firm value, they are the deviation standard cash holding model and partial speed of adjustment model. Using sampling companies from Indonesia during 2001-2017, the study employs some techniques of regression for dynamic panel data with fixed effects, the pooled ordinary least square with fixed effects, and regression moderated analysis. Research findings show that: first, the deviation standard cash holding and partial speed of adjustment affect firm value; second, by using the deviation standard cash holding model, it shows that managerial ownership, institutional ownership, investment and debt moderate the effect of the deviation standard cash holding on firm value; third, by using the partial speed of adjustment model, it shows that investment moderates the effect of partial speed of adjustment on firm value. The implications of the study are to explain two speed of cash holding adjustment models and their impacts on the increasing trend of firm value.http://jurnal.unmer.ac.id/index.php/jkdp/article/view/2604Corporate governanceDebtInvestmentOptimal cash holdings speed of adjustment |
| spellingShingle | Heru Kristanto Hendro Cahyono Mamduh M Hanafi Bowo Setiyono The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia Jurnal Keuangan dan Perbankan Corporate governance Debt Investment Optimal cash holdings speed of adjustment |
| title | The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia |
| title_full | The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia |
| title_fullStr | The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia |
| title_full_unstemmed | The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia |
| title_short | The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia |
| title_sort | optimal cash holdings speed of adjustment and firm value an empirical study in indonesia |
| topic | Corporate governance Debt Investment Optimal cash holdings speed of adjustment |
| url | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/2604 |
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