The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms
The aim of this paper is to examine the effect of cash, optimal cash holding, deviation from target cash (the target adjustment model) on the firm value. This research uses a sample of Indonesian publicly traded firms for the period 2001-2017 (3,349 observation). This paper uses a dynamic panel fixe...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Negeri Semarang
2019-03-01
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| Series: | Jurnal Dinamika Manajemen |
| Subjects: | |
| Online Access: | https://journal.unnes.ac.id/nju/index.php/jdm/article/view/17359 |
| _version_ | 1811330663039631360 |
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| author | R Heru Kristanto HC Mamduh M Hanafi Wayan Nuka Lantara |
| author_facet | R Heru Kristanto HC Mamduh M Hanafi Wayan Nuka Lantara |
| author_sort | R Heru Kristanto HC |
| collection | DOAJ |
| description | The aim of this paper is to examine the effect of cash, optimal cash holding, deviation from target cash (the target adjustment model) on the firm value. This research uses a sample of Indonesian publicly traded firms for the period 2001-2017 (3,349 observation). This paper uses a dynamic panel fixed effects model to estimate optimal cash holdings. Hypothesis testing uses GLS fixed effect and interaction effect uses regression moderated analysis. Research finds that: first, cash, optimal cash, and deviation from target cash have an effect on the firm value. Second, corporate governance moderates the effect of cash, optimal cash, and deviation from target cash on the firm value. Third, investment positively moderates the effect of cash on the firm value. Investment negatively moderates the effect of optimal cash, deviation from target cash on the firm value. Debt negatively moderates the effect of cash, optimal cash on the firm value. Debt positively moderates the effect of deviation from target cash on the firm value. |
| first_indexed | 2024-04-13T16:05:57Z |
| format | Article |
| id | doaj.art-a446b536282f4a1c81548d2e05ccda0c |
| institution | Directory Open Access Journal |
| issn | 2086-0668 2337-5434 |
| language | English |
| last_indexed | 2024-04-13T16:05:57Z |
| publishDate | 2019-03-01 |
| publisher | Universitas Negeri Semarang |
| record_format | Article |
| series | Jurnal Dinamika Manajemen |
| spelling | doaj.art-a446b536282f4a1c81548d2e05ccda0c2022-12-22T02:40:23ZengUniversitas Negeri SemarangJurnal Dinamika Manajemen2086-06682337-54342019-03-0110111310.15294/jdm.v10i1.173599048The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian FirmsR Heru Kristanto HC0Mamduh M Hanafi1Wayan Nuka Lantara2FEB UPN V YogyakartaFEB UGMFEB UGMThe aim of this paper is to examine the effect of cash, optimal cash holding, deviation from target cash (the target adjustment model) on the firm value. This research uses a sample of Indonesian publicly traded firms for the period 2001-2017 (3,349 observation). This paper uses a dynamic panel fixed effects model to estimate optimal cash holdings. Hypothesis testing uses GLS fixed effect and interaction effect uses regression moderated analysis. Research finds that: first, cash, optimal cash, and deviation from target cash have an effect on the firm value. Second, corporate governance moderates the effect of cash, optimal cash, and deviation from target cash on the firm value. Third, investment positively moderates the effect of cash on the firm value. Investment negatively moderates the effect of optimal cash, deviation from target cash on the firm value. Debt negatively moderates the effect of cash, optimal cash on the firm value. Debt positively moderates the effect of deviation from target cash on the firm value.https://journal.unnes.ac.id/nju/index.php/jdm/article/view/17359optimal cash holdingdeviation standarts cashcorporate governanceinvestmentsdebt. |
| spellingShingle | R Heru Kristanto HC Mamduh M Hanafi Wayan Nuka Lantara The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms Jurnal Dinamika Manajemen optimal cash holding deviation standarts cash corporate governance investments debt. |
| title | The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms |
| title_full | The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms |
| title_fullStr | The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms |
| title_full_unstemmed | The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms |
| title_short | The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms |
| title_sort | effect of optimal cash and deviation from target cash on the firm value empirical study in indonesian firms |
| topic | optimal cash holding deviation standarts cash corporate governance investments debt. |
| url | https://journal.unnes.ac.id/nju/index.php/jdm/article/view/17359 |
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