Cash is the most liquid asset that can be used by companies to finance the
operating activities of the company. Without the cash the company's activities may
not run properly. This study aims to analyze and provide empirical evidence
regarding how the investment opportunity set and leverage on cash holdings as
well as the effect of the dividend payment in the moderating influence of
investment opportunity set and leverage on cash holdings in chemical and basic
industry sectors, the various sectors of the industry, and the consumer goods
industry sectorslisted on the Stock Exchange 2011-2015.
This study uses the company's financial report data collected from the
Indonesian Stock Exchange (IDX). The sampling technique used was purposive
sampling with criteria of the company's annual report published continuously in
the years 2011-2015, to submit financial statements in Indonesian Rupiah, and
deliver complete data. The sample in this study was 135 companies. The analysis
technique used in this research is multiple regression analysis.
The results showed that of the four research hypotheses H3 just received,
ie leverage negative effect on cash holdings. While the investment opportunity set
effect on cash holdings but with a positive direction, the dividend payment weaken
the influence of a positive investment opportunity set against cash holdings, and
the dividend payment can not moderate the negative effects of leverage on cash
holdings
