Paper Title
Financial Statement Comparability and Cash Holding: Case of Manufacturing Firms in Indonesia
Abstract
The amount of cash holdings has been considered as an important issue by many companies and many previous studies have tried to analyze the determinants of cash holdings and recently, financial statement comparability has been considered as one of the important determinants. Focusing on analyzing the impact of financial statement comparability on cash holdings in the case of Indonesian manufacturing firms, a data of 1,199 publicly listed Indonesian manufacturing companies from 2009-2019 were collected and analyzed using dynamic panel regression. The result shows that there is no significant relationship between financial statement comparability and cash holdings. Different from financial statement comparability, capital expenditure, net working capital, and cash flow volatility have significant effect on cash holdings.
Keywords - Financial Statement Comparability, Cash Holding, Manufacturing, Dynamic Panel Regression