The Influence of Capital Expenditure, Cash Flow, Leverage and Cash Conversion Cycle on Cash Holding in Manufacturing Companies in the Basic and Chemical Industries
DOI:
https://doi.org/10.62951/ijbmir.v3i2.209Keywords:
Capital Expenditure, Cash Conversion Cycle, Cash Flow, Cash Holding, LeverageAbstract
This study seeks to examine how capital expenditure, cash flow, leverage, and cash conversion cycle affect cash holdings in manufacturing firms within the basic and chemical sectors listed on the Indonesia Stock Exchange. A quantitative method employing the SEM-PLS technique is utilized, analyzed through the SmartPLS version 3 software. The research sample is derived using a purposive sampling method, selecting companies that are consistently listed from 2022 to 2024 and possess complete financial reports. Data analyses were performed to identify the structural relationships among variables and to evaluate the direct impact of each independent variable on cash holdings. The findings reveal that capital expenditure positively and significantly influences cash holdings, suggesting that increased capital investments lead firms to maintain higher cash reserves for financial flexibility. Conversely, cash flow does not have a significant impact, indicating that internal cash availability is not a crucial factor in decisions regarding cash retention. Leverage demonstrates a significant negative effect, showing that high debt levels limit the ability of firms to preserve cash. Furthermore, the cash conversion cycle exhibits a positive but insignificant effect, signifying that the efficiency of the operational cycle is not yet a strong factor influencing cash policy. These results highlight the necessity of effectively managing capital structure, investment approaches, and operational balances as foundational elements in establishing a company’s cash holding strategy.
References
Adrian, T., & Shin, H. S. (2010). Liquidity and leverage. Journal of Financial Intermediation, 19(3), 418–437. https://doi.org/10.1016/j.jfi.2008.12.002
Agus Gunawan, Oktaviani, T., & Sunayah. (2021). Pengaruh investment opportunity set, capital expenditure dan cash conversion cycle terhadap cash holding pada perusahaan sektor industri dasar & kimia yang terdaftar di Bursa Efek Indonesia periode 2015–2019. Jurnal Indonesia Sosial Sains, 2(5), 681–694. https://doi.org/10.36418/jiss.v2i5.292
Agyei, J., Sun, S., & Abrokwah, E. (2020). Trade-off theory versus pecking order theory: Ghanaian evidence. SAGE Open, 10(3), 2158244020940987. https://doi.org/10.1177/2158244020940987
Alfira, A., Rasita, R., Alvina, J., Khorico, C., & Tanjung, M. A. (2021). Debt to asset ratio, growth opportunity dan cash flow terhadap cash holding pada perusahaan consumer goods. Jurnal Penelitian Dan Pengembangan Sains Dan Humaniora, 5(2), 288–294. https://doi.org/10.23887/jppsh.v5i2.34966
Almeida, H., Campello, M., & Weisbach, M. S. (2004). The cash flow sensitivity of cash. The Journal of Finance, 59(4), 1777–1804. https://doi.org/10.1111/j.1540-6261.2004.00679.x
Ananda, C. R. (2020). Pengaruh corporate governance, ukuran perusahaan, dan leverage terhadap integritas laporan keuangan. Journal of Business and Economics (JBE) UPI YPTK, 5(3), 8–14. https://doi.org/10.35134/jbeupiyptk.v5i3.149
Brown, J. R., & Petersen, B. C. (2011). Cash holdings and R&D smoothing. Journal of Corporate Finance, 17(3), 694–709. https://doi.org/10.1016/j.jcorpfin.2010.01.003
Camelia, R., & Akbar, F. S. (2024). Pengaruh capital expenditure, cash flow, leverage, dan profitabilitas terhadap cash holding. Al-Buhuts, 20(2), 622–637
Cho, C. H., Freedman, M., & Patten, D. M. (2012). Corporate disclosure of environmental capital expenditures: A test of alternative theories. Accounting, Auditing & Accountability Journal, 25(3), 486–507. https://doi.org/10.1108/09513571211209617
Cindy, N., Chelsya, C., & Fernanda, V. (2023). Pengaruh firm size, leverage dan capital expenditure terhadap cash holding. Economics and Digital Business Review, 4(2), 350–363. https://doi.org/10.37531/ecotal.v4i2.602
Correa-Caro, C., Medina, L., Poplawski-Ribeiro, M., & Sutton, B. (2021). Fiscal stimulus and firms’ sales and capital expenditure during the global financial crisis. Comparative Economic Studies, 63(3), 489–516. https://doi.org/10.1057/s41294-021-00153-9
Dirvi, D. S. A., Eksandy, A., & Mulyadi, M. (2020). Pengaruh growth opportunity, NWC, cash conversion cycle, IOS dan leverage terhadap cash holding. JEMASI: Jurnal Ekonomi Manajemen Dan Akuntansi, 16(1), 44–58. https://doi.org/10.35449/jemasi.v16i1.87
Erwin Dyah Astawinetu, M. M., & Sri Handini, M. M. (2020). Manajemen keuangan: Teori dan praktek. Scopindo Media Pustaka.
Farach Dhiba Helmaliana, Nor Norisanti, & Erry Sunarya. (2024). Analisis cash conversion cycle, capital expenditure dan investment opportunity set dalam mengoptimalkan cash holding. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 6(11), 6938–6947. https://doi.org/10.47467/alkharaj.v6i11.3391
Faujiah, A., Mulyatini, N., & Herlina, E. (2021). Pengaruh cash conversion cycle terhadap cash holding (Studi pada PT Lippo Cikarang Tbk yang terdaftar pada BEI periode 2009–2018). Business Management and Entrepreneurship Journal, 2(4), 43–52.
Frank, M. Z., & Goyal, V. K. (2008). Trade-off and pecking order theories of debt. In B. E. Eckbo (Ed.), Handbook of empirical corporate finance (pp. 135–202). Elsevier. https://doi.org/10.1016/B978-0-444-53265-7.50004-4
Harahap, S. S. (2011). Analisis kritis atas laporan keuangan. Rajawali Pers.
Hengsaputri, J. A., & Bangun, N. (2020). Pengaruh growth opportunity, net working capital dan capital expenditure terhadap cash holding. Jurnal Paradigma Akuntansi, 2(3), 1343–1352. https://doi.org/10.24912/jpa.v2i3.9560
Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., & Sholichah, F. (2021). The effect of liquidity, leverage, and profitability on firm value: Empirical evidence from Indonesia. The Journal of Asian Finance, Economics and Business, 8(3), 423–431. https://doi.org/10.13106/jafeb.2021.vol8.no3.0423
Kudu, A. L. T. D., & Salim, S. (2021). Pengaruh leverage, capital expenditure, dan net working capital terhadap cash holding perusahaan. Jurnal Paradigma Akuntansi, 3(2), 515–522. https://doi.org/10.24912/jpa.v3i2.11715
Kurniawan, H., & Tanusdjaja, H. (2020). Pengaruh leverage, firm size, profitability dan liquidity terhadap corporate cash holding. Jurnal Paradigma Akuntansi, 2(3), 954–961. https://doi.org/10.24912/jpa.v2i3.9538
Lang, L., Ofek, E., & Stulz, R. (1996). Leverage, investment, and firm growth. Journal of Financial Economics, 40(1), 3–29. https://doi.org/10.1016/0304-405X(95)00842-3
Lyandres, E., & Palazzo, B. (2016). Cash holdings, competition, and innovation. Journal of Financial and Quantitative Analysis, 51(6), 1823–1861. https://doi.org/10.1017/S0022109016000726
Lyroudi, K., & Lazaridis, Y. (2000). The cash conversion cycle and liquidity analysis of the food industry in Greece. SSRN. https://doi.org/10.2139/ssrn.236175
Mindhari, A., Yasin, I., & Isnaini, F. (2020). Perancangan pengendalian internal arus kas kecil menggunakan metode imprest (Studi kasus: PT Es Hupindo). Jurnal Teknologi Dan Sistem Informasi, 1(2), 58–63. https://doi.org/10.33365/jtsi.v1i2.388
Moss, J. D., & Stine, B. (1993). Cash conversion cycle and firm size: A study of retail firms. Managerial Finance, 19(8), 25–34. https://doi.org/10.1108/eb013739
Myers, S. C. (1984). The capital structure puzzle (NBER Working Paper No. 1393). National Bureau of Economic Research. https://doi.org/10.3386/w1393
Opler, T., Pinkowitz, L., Stulz, R., & Williamson, R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3–46. https://doi.org/10.1016/S0304-405X(99)00003-3
Purwanti, A. (2023). Akuntansi manajemen. Salemba Empat.
Rizki, G. (2017). Pengaruh cash flow, leverage, size of firm, net working capital, capital expenditure, growth opportunity dan volatility of cash flow terhadap cash holding. Jurnal Ilmiah Mahasiswa FEB UB, 4(1), 1–23.
Romel, W., & Ekadjaja, A. (2023). Pengaruh profitabilitas, leverage, firm size, dan net working capital terhadap cash holding. Jurnal Ekonomi, 28(1), 42–59. https://doi.org/10.24912/je.v28i1.1380
Rosyidah, E. H., & Santoso, B. H. (2018). Pengaruh IOS, NWC, CCC, dan GO terhadap cash holding perusahaan industri konsumsi. Jurnal Ilmu Dan Riset Manajemen (JIRM), 7(5).
Santos, T., & Veronesi, P. (2022). Leverage. Journal of Financial Economics, 145(2), 362–386. https://doi.org/10.1016/j.jfineco.2021.12.006
Sawir, A. (2005). Analisis kinerja keuangan dan perencanaan keuangan perusahaan. PT Gramedia Pustaka Utama.
Serrasqueiro, Z., & Caetano, A. (2015). Trade-off theory versus pecking order theory: Capital structure decisions in a peripheral region of Portugal. Journal of Business Economics and Management, 16(2), 445–466. https://doi.org/10.3846/16111699.2012.744344
Sharma, M., & Gupta, P. (2017). CapEx funding, capital structure, and revenue targets for entrepreneurial financing ventures in the manufacturing sector by venture capital funds. The Journal of Private Equity, 20(4), 47–49. http://www.jstor.org/stable/44397536
Sheng, S. (2022). Agency problem or trade-off hypothesis: The implication of corporation cash holding—Test based on crash risk. In 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022) (pp. 1703–1711). Atlantis Press. https://doi.org/10.2991/aebmr.k.220405.284
Siregar, I. G., Pambudi, J. E., & Septiana, H. V. (2022). Pengaruh net working capital, cash conversion cycle, leverage dan cash flow terhadap cash holding (Pada perusahaan industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia periode 2016–2020). ASSET: Jurnal Manajemen Dan Bisnis, 5(1). https://doi.org/10.24269/asset.v5i1.5235
Suci, M. S. M., & Susilowati, Y. (2021). Analisis pengaruh profitability, cash flow, leverage, dan net working capital terhadap cash holding (Pada perusahaan manufaktur yang terdaftar di BEI tahun 2017–2019). Media Bina Ilmiah, 15(12), 5821–5832. https://doi.org/10.33758/mbi.v15i12.1246
Sudana, I. M. (2019). Manajemen keuangan teori dan praktik. Airlangga University Press.
Sukamulja, S. (2021). Manajemen keuangan korporat: Teori, analisis, dan aplikasi dalam melakukan investasi. Penerbit Andi.
Suntraruk, P. (2023). The mediating effect of profitability on the relationship between working capital management and sustainable growth. Studies in Business and Economics, 18(1), 314–327. https://doi.org/10.2478/sbe-2023-0019
Trisnawati, W., & Wahidahwati, W. (2013). Pengaruh arus kas operasi, investasi dan pendanaan serta laba bersih terhadap return saham. Jurnal Ilmu Dan Riset Akuntansi, 1(1), 77–92.
Utmi, A. N., Zahara, & Septriani, Y. (2025). Analisis pengaruh cash convertion cycle, investment opportunity set, leverage, firm size, dan liquidity terhadap cash holding. Jurnal Ilmiah Research Student, 2(1), 319–330.
Vogt, S. C. (1997). Cash flow and capital spending: Evidence from capital expenditure announcements. Financial Management, 26(2), 44–57. https://doi.org/10.2307/3666166
Waluyo, D. (2025). Gemilang di triwulan III-2024. Indonesia.Go.Id. https://indonesia.go.id/kategori/editorial/8880/gemilang-di-triwulan-iii-2024?lang=1
Weidemann, J. F. (2018). A state-of-the-art review of corporate cash holding research. Journal of Business Economics, 88(6), 765–797. https://doi.org/10.1007/s11573-018-0904-x
William, W., & Fauzi, S. (2013). Analisis pengaruh growth opportunity, net working capital, dan cash conversion cycle terhadap cash holdings perusahaan sektor pertambangan. Jurnal Ekonomi Dan Keuangan, 1(2), 14877.
Wulandari, E. A., & Setiawan, M. A. (2019). Pengaruh growth opportunity, net working capital, cash conversion cycle dan dividend payout terhadap cash holding. Jurnal Eksplorasi Akuntansi, 1(3), 1259–1274. https://doi.org/10.24036/jea.v1i3.141
Yuliansyah, F. A. (2021). Pengaruh pertumbuhan penjualan, pengeluaran modal, cash conversion cycle, investment opportunity set, leverage, dan board size terhadap cash holding (Studi empiris pada perusahaan pertambangan sub sektor batu bara yang terdaftar di Bursa Efek Indonesia). Jurnal Ilmiah Manajemen, Ekonomi Dan Bisnis, 1(2).
Zefanya Elnathan, L., & Susanto, L. (2020). Pengaruh leverage, firm size, likuiditas dan profitabilitas terhadap cash holding. Jurnal Paradigma Akuntansi, 2(1), 40–49. https://doi.org/10.24912/jpa.v2i1.7136
Zeidan, R., & Shapir, O. M. (2017). Cash conversion cycle and value-enhancing operations: Theory and evidence for a free lunch. Journal of Corporate Finance, 45, 203–219. https://doi.org/10.1016/j.jcorpfin.2017.04.001
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 International Journal Business, Management and Innovation Review
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
