THE NEXUS OF SALES GROWTH AND ROA ON CASH HOLDING WITH FIRM SIZE AS A MODERATING VARIABLE
DOI:
https://doi.org/10.58890/jkb.v17i2.463Keywords:
Sales Growth, Profitability, Cash Holding, Firm Size, ModeratingAbstract
This study aims to examine the factors influencing Cash Holding in manufacturing companies, particularly the effect of Sales Growth and Return on Assets (ROA), and to analyze whether Firm Size moderates these relationships. The research employs a quantitative approach with an associative causal method. The sample consists of 52 manufacturing companies observed during the 2020–2024 period, resulting in 260 data points. Secondary data were obtained from the S&P database, and statistical analysis was conducted using SPSS version 29. The results indicate that Sales Growth has a positive and significant effect on Cash Holding, where an increase of one unit in Sales Growth raises Cash Holding by 3.641 units. ROA does not significantly affect Cash Holding. Firm Size does not moderate the relationship between Sales Growth and Cash Holding, nor between ROA and Cash Holding. Sales Growth plays a more dominant role in determining Cash Holding compared to profitability (ROA) and Firm Size. The size of a company does not determine how sales performance or profitability influences cash retention. The study is limited to manufacturing companies and uses secondary data from the 2020–2024 period, which may not represent other industries or different time frames. This research contributes to the understanding of cash management by revealing the stronger influence of sales performance over profitability and firm size on cash holding decisions in manufacturing firms.
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