Moderated by cash conversion cycle: Growth opportunity and capital expenditure on cash holding

Putu Nadya Shari; Gerianta Wirawan Yasa; Ketut Yadnyana; Henny Triyana Hasibuan

doi:10.21744/ijbem.v8n2.2386

Authors

Putu Nadya Shari
nadyashaript@gmail.com
Udayana University, Denpasar, Indonesia
Gerianta Wirawan Yasa Udayana University, Denpasar, Indonesia
Ketut Yadnyana Udayana University, Denpasar, Indonesia
Henny Triyana Hasibuan Udayana University, Denpasar, Indonesia

Keywords:

Cash Conversion Cycle, Cash Holding, Capital Expenditure, Growth Opportunity

Abstract

This study aims to provide empirical evidence regarding the effect of growth opportunity and capital expenditure on cash holding with cash conversion cycle as a moderating variable. The theories used in this study are the trade-off theory and the pecking order theory. The population in this study is health sector companies listed on the Indonesia Stock Exchange for the period 2020-2023. This research uses a quantitative approach. The sampling technique used was purposive, and a sample of 20 companies, or 80 total observations. The data analysis technique in the study used Moderated Regression Analysis (MRA). The results of the analysis provide evidence that growth opportunity has a positive effect on cash holding, capital expenditure has no significant effect, then the cash conversion cycle can strengthen the influence between growth opportunity and cash holding and weaken the influence between capital expenditure and cash holding. The theoretical implications of this research can confirm the trade-off theory and pecking order theory based on the test results that have been carried out.

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