ANALISIS SENSITIVITAS CASH FLOW DARI CASH HOLDING YANG BERSIFAT ASIMETRI (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2010 – 2012)

Abstract

This study is purposed to examine constrasting conclusion regarding the corporate cash flow sensitivity of cash holdings between research of Almeida, Campello, and Weisbach (2004) and Riddick and Withed (2009) In addition, the writer use augmented empirical model to affirm the conclusion Riddick and Whited that the cash flow sensitivity of cash holdings is generally negative. The asymmetry may be due to several reason, including binding project contracts, bad news withholding, and agency problems. With using sampel from manufacturing firms that listing in IDX for 2010-2012 the writer examine whether the negative sensitivity cash flow of cash holding is applied in corporation with all possibility of cash flow environment ( positive and negative). So that, this reaserch is developed by using cash flow environment as the moderating variable to asses the existence of asymmetric cash flow sensitivity of cash holdings and the direction of the sensitivity of cash. The writer further divide firms into financially constraint and financially unconstraint firm, to examine if there is relationship between financial restriction and the posiibility of asymmetric cash flow sensitivity of cash holdings. The writer also analyze the ascendancy of institutional holding as the agency problem monitoring that lead to asymmetric cash flow sensitivity. The result of this study that applied in Indonesian corporation show that there is not asymmetric sensitivity of cash holding. And the sensitivity is shown positive trend. So that, the change of cash holding or its sensitivity is linearly influenced by net cash (in) flow received by the corporation and its moderated by cash flow environment of corporation, either positive or negative cash flow