Authors: Kim Sung Suk, Melinda Haryanto, John Tampil Purba

Year: 2019, Volume 29 No. 1
Pages: 40-57


This research focuses on the behavior of cash holdings of business group-affiliated firms in Indonesia from 2004 to 2013. We find that business group-affiliated firms hold more cash than that of stand-alone firms. Size of business group, cash holdings of other firms in the same business group, age of the business group, and the degree of diversification of business group have a positive influence on cash holdings of the business group-affiliated firms. However, the correlation of growth opportunities among the same group-affiliated firms has limited effects on the cash holdings of the firm.

Keywords: Cash holdings, business group, Indonesia
JEL Classification: G32, G34, G39