Capital Structure and Working Capital of Cash Holding in Consumer Non-Cyclical Companies in Indonesia

Dinarossi Utami, Belliwati Kosim, Ervita Safitri

Abstract


This research aims to expand previous literature regarding the impact of capital structure and working capital on cash holding. The research population comprised one hundred non-cyclical consumer companies from 2011 to 2022 and a sample of 55 companies with 266 observations. The research results show that working capital strongly influences the cash holding of non-cyclical consumer companies in Indonesia. This result is because it is related to the company's operational efficiency. Good operational management enables companies to maintain adequate liquidity, manage operational risks, and take advantage of existing opportunities without facing financial problems.


Keywords


Capital structure, Working Capital, Cash Holding.

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References


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DOI: https://doi.org/10.30596/miceb.v2i0.525

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